Which of the following is NOT required while considering GNP (Gross National Product)?
- APurchase of goods by Government
- BPrivate investment
- CPer capita income of citizens
- DNet foreign investment
Solution & Step-by-step Explanation
Gross National Product (GNP) is calculated using components of aggregate demand:
Where:
* = Private Consumption
* = Private Investment
* = Government Purchases
* = Net exports and net foreign factors/investments.
Per capita income is a derived average metric () and is not a foundational expenditure component required to tally or measure GNP.
Where:
* = Private Consumption
* = Private Investment
* = Government Purchases
* = Net exports and net foreign factors/investments.
Per capita income is a derived average metric () and is not a foundational expenditure component required to tally or measure GNP.