Question

By subtracting Depreciation from Gross Domestic Product we get ___________.

• A. NDP (Net Domestic Product)
• B. GNP (Gross National Product)
• C. GDP (Gross Domestic Product)
• D. None of the above

Answer 1

The correct option is A NDP (Net Domestic Product)

By subtracting depreciation from Gross domestic product we get NDP (Net Domestic Product)

When depreciation (decrease in assets due to unfavourable conditions) is subtracted from Gross domestic product which is the measure of the market value of all final goods and services produced in a year we get NDP (Net Domestic Product)

NDP=GDP-Depreciation