Which of the following statements are true in macroeconomics?

(A). GVA at factor costs + Net production taxes = GVA at basic prices.

(B). GVA at basic prices + Net product taxes = GVA at market prices.

(C). GNP ≡ GDP - Net factor income from abroad.

(D). NNP ≡ GNP – Depreciation.

Choose the correct answer from the options given below:

Option 1 -> States (A), (B) and (C) are true. However, statement (C) is incorrect as GNP = GDP + Net factor income from abroad, not minus.

Option 2 -> States (A), (B) and (D) are true. Statement (A) correctly shows GVA at factor cost plus net production taxes equals GVA at basic prices. Statement (B) correctly shows GVA at basic prices plus net product taxes equals GVA at market prices. Statement (D) correctly shows NNP equals GNP minus depreciation. Statement (C) is false as it should be GDP + NFIA, not minus.

Option 3 -> States all four are true. However, statement (C) is incorrect.

Option 4 -> States (B), (C) and (D) are true. However, statement (C) is incorrect.

Hence, Option 2: (A), (B) and (D) only -> Statement (A) is correct: GVA at basic prices = GVA at factor cost + Net production taxes. Statement (B) is correct: GVA at market prices = GVA at basic prices + Net product taxes. Statement (D) is correct: NNP (Net National Product) = GNP (Gross National Product) - Depreciation. Statement (C) is INCORRECT because the correct relationship is GNP = GDP + Net factor income from abroad (not minus). Net factor income from abroad is added to GDP to get GNP, as it represents income earned by domestic factors abroad minus income earned by foreign factors domestically. -> correct