Which of the following best describes the relationship between Gross Domestic Product (GDP) and Gross National Income (GNI) in the context of national income accounting?
1
GDP and GNI are identical as both measure the total economic output of a country within its geographical boundaries.
2
GDP measures the total economic output within a country's borders, while GNI adjusts GDP by adding net income received from abroad.
3
GNI exclusively considers the income earned by a country's residents from overseas investments, disregarding domestic production.
4
GDP is a subset of GNI, focusing only on income from government and nonprofit sectors within a country.
5
GNI is always larger than GDP as it includes additional taxes and subsidies not captured in GDP calculations.