To derive net domestic product (NDP)from gross domestic product (GDP),we must subtract
A) depreciation or capital consumption allowance from GDP.
B) gross private domestic investment from GDP.
C) imports from GDP.
D) inventory investment from GDP.
E) the statistical discrepancy from GDP.

Question

Quizplus · Accepted Answer

Net Domestic Product (NDP) is the value of all goods and services produced within a country's borders, but it deducts depreciation (or Capital Consumption Allowance) from Gross Domestic Product (GDP). Therefore, to obtain NDP, we subtract depreciation from GDP.

To Derive Net Domestic Product (NDP)from Gross Domestic Product (GDP),we