Darla,a U.S.citizen,only works in Canada.How does the value added to production from her employment impact GDP and GNP?
A) It raises Canadian and U.S.GDP.
B) It raises Canadian GDP and U.S.GNP.
C) It raises Canadian GNP and U.S.GDP.
D) It raises Canadian and U.S.GNP.

Question

Quizplus · Accepted Answer

Darla's work in Canada only contributes to Canadian GDP, not U.S. GDP, since she is not producing anything in the U.S. However, her income from working in Canada will be included in U.S. GNP, as it represents the value of her production as a U.S. citizen regardless of where it occurs. Therefore, her employment raises Canadian GDP and U.S. GNP.

Darla,a US