GDP equals net domestic product plus

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of all goods and services produced in a country during a specific time period. Net domestic product (NDP) is calculated by subtracting depreciation (the decrease in value of physical capital over time) from GDP. Therefore, GDP equals NDP plus depreciation. Indirect business taxes and personal taxes, retained earnings, transfer payments, and business transfers are all components that are not included in the calculation of GDP.

GDP Equals Net Domestic Product Plus