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What is the difference between GDP and GNP? Which is a more accurate measure of local income and why?

I understand the difference between GDP and GNP however, I am unsure on how to answer the second question as to which one is more accurate with regards to local income and why.

Thank you for your help!

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As you know, GDP measures the goods and services produced within the territorial boundaries of a country. GNP, on the other hand, measures the income of all the ...

Solution Summary

This solution discusses whether GDP or GNP is a better measure of local income and why this is so.