A GNP is understated for developed countries, since a number of items included in
their national incomes are intermediate goods
B The economic contribution of a housewife in a peasant family may not be measured in GNP in poor
country.
C GNP is understated for developing countries since many of their labor-intensive good have no impact
on exchange rate since they are not traded.
D GNP is overstated for countries where the price of foreign exchange is less than market clearing price.
