Question

Why are exports included in the estimation of domestic product by the expenditure method? Can the

gross domestic product be greater than the gross national product? Explain.


PLEASE GUYZZ !!!!!!!!!!!!​

Answer 1

Answer:

Thus, in order to estimate the net expenditure on domestic goods by domestic residents, we include net exports in the expenditure method of estimating national income. ... Yes, GDP can be greater than GNP in the situation when when net factor income from abroad (NFIA) is negative.

Answer 2

Hey Mate !

The rationale behind taking net exports in expenditure method of estimation of national income is that domestic residents incur some of their income on foreign goods known as imports, while on the other hand, foreign residents also incur some part of their income on domestic goods known as exports.

Explanation:

Hope it helps u

Thank it !

#Keep smiling :)