What concept refers specifically to the economic output adjusted by transactions with other nations?

The correct answer, Gross National Income (GNI), represents the total economic output of a country, including the income earned by residents from investments made abroad minus the income earned within the domestic economy by foreign residents. GNI provides a more accurate reflection of the economic performance of a nation's residents, capturing their wealth and financial activities in a global context.

In contrast, Gross Domestic Product (GDP) measures the economic output generated within a country's borders, regardless of who owns the producing resources. This means that GDP does not account for earnings from foreign investments by domestic residents or foreign earnings from domestic resources. This distinction is crucial because it affects how we assess economic health and the standards of living across different nations.

The Inflation Rate tracks the rate at which prices for goods and services rise, indicating changes in purchasing power over time, but it does not provide insight into international transactions or income adjustments.

The Human Development Index (HDI) combines indicators of life expectancy, education, and per capita income to assess a country's development and quality of life, without directly focusing on economic transactions with other nations.

Therefore, GNI is the appropriate measure to reference when considering economic output adjusted by international transactions.