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GNP included the money value of final foods and services product by citizens within a national??s borders and in the rest of the world. In this case, the GDP exceeds GNP, the final goods and services product by the citizens are the same. So the foreigners produce more in the U.S. than U.S. citizens?? product in the rest of the world.
2. When the city of Chicago purchases a new school building, the investment component of GDP increases. Do you think this sentence is correct? Why?
I don??t think this sentence is correct. This is not the investment component of GDP increases. GDP = Consumption + Investment + Government purchase + Net export...
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