Depreciation is subtracted from GNP to determine

Question

Quizplus · Accepted Answer

Depreciation is the decrease in the value of goods and services over time due to wear and tear, obsolescence, or other factors. It is subtracted from the Gross National Product (GNP) to determine the Net National Product (NNP), which is a measure of the value of goods and services produced by a country's residents. NNP represents the total value of the final output of goods and services generated by a country's production factors, including labor and capital, minus the depreciation of capital.

Depreciation Is Subtracted from GNP to Determine