Net national product equals

Question

Quizplus · Accepted Answer

Net national product (NNP) is calculated by subtracting depreciation from gross national product (GNP). Depreciation accounts for the wear and tear on capital goods over time and is therefore subtracted to get a more accurate measure of a country's economic output. Option A is incorrect because it adds depreciation to GNP instead of subtracting it. Options C and D are incorrect because they involve subtracting other variables from GNP instead of depreciation.

Net National Product Equals