Explain the difference between GDP and GNP. If the residents of the United States generate as much production in the rest of the world as the rest of the world produces in the United States, what should be true about U.S. GDP and GNP?
a. GDP measures the value of all goods and services produced within a country's borders, while GNP measures the value of all goods and services produced by a country's residents, whether within the country's borders or abroad.

b. If the residents of the United States generate as much production in the rest of the world as the rest of the world produces in the United States, then U.S. GDP and GNP would be equal.

c. GDP includes the value of foreign production within a country's borders, while GNP includes the value of a country's production anywhere in the world.

d. If the residents of the United States generate more production in the rest of the world than the rest of the world produces in the United States, then U.S. GNP would be higher than its GDP.