Which of the following statements are true in macroeconomics?
(A). GVA at factor costs + Net production taxes = GVA at basic prices.
(B). GVA at basic prices + Net product taxes = GVA at market prices.
(C). GNP = GDP - Net factor income from abroad.
(D). NNP = GNP - Depreciation.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (D) only
(A). GVA at factor costs + Net production taxes = GVA at basic prices. (True)
(B). GVA at basic prices + Net product taxes = GVA at market prices. (True)
(C). GNP = GDP - Net factor income from abroad. (False). GNP = GDP + Net factor income from abroad.
(D). NNP = GNP - Depreciation. (True)