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What is the difference between GDP and GNP? If Canadians generate the same income abroad as foreigners generate for their Canadian owned assets and enterprises, what will be true about the relation between GDP and GNP?
116) Is looking at changes in gross domestic product over time a good way to determine whether the people in a country are experiencing an increase in their standards of living? Why or why not?
117) Suppose the size of the underground economy is roughly 20% of GDP in Canada. Does this necessarily mean that the government is missing out on collected tax revenues?
118) Explain with the assistance of the enhanced circular flow diagram why the dollar value of total output must equal total income.
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