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Question

If we add _______ to net domestic production we get GDP.

A
depreciation
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B
direct tax
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C
indirect tax
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D
interest payment
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Solution

The correct option is A depreciation
The net domestic product (NDP) equals the gross domestic product (GDP) minus depreciation on a country's capital goods. Net domestic product accounts for capital that has been consumed over the year in the form of housing, vehicle, or machinery deterioration.

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