Question: Use equations to support your answer to this question. Do not forget to explain your reasoning. No credit without explanation. Let GDP and GNI be
- Use equations to support your answer to this question. Do not forget to explain your reasoning. No credit without explanation. Let GDP and GNI be the gross domestic product and the gross national income of Brazil. Suppose that in 2019, Brazil's GDP = 1.86 trillion dollars and its GNI = 1.65 trillion dollars. Also assume that in that year the trade balance, net unilateral transfers, and the investment income of Brazil were different from zero. Which of the following options is the most plausible explanation to the fact that for that year GDP > GNI in Brazil?
- (a)Brazil had a trade balance surplus.
- (b)Brazil had a trade balance deficit.
- (c)The sum of the net investment income and net international compensation to employees was positive.
- (d)The sum of the net investment income and net international compensation to employees was negative.
- (e)Because the net unilateral transfers and the investment income of Brazil were both positive.
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