If Mercedes builds cars in the United States, is their value counted in U.S. GNP? If General Motors builds cars in Germany, is their value counted in Germany's GDP? What is the mathematical relationship between GDP and GNP? Which component of GDP includes changes in private inventories? What is true of real and nominal GDP during the base year? What is one of the issues with the measurement of GDP?

If Mercedes builds cars in the United States, is their value counted in U.S. GNP? If General Motors builds cars in Germany, is their value counted in Germany's GDP? What is the mathematical relationship between GDP and GNP? Which component of GDP includes changes in private inventories? What is true of real and nominal GDP during the base year? What is one of the issues with the measurement of GDP?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 7P

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