The term "depreciation" in the national income accounts refers to
A)the adjustment of GDP for inflation.
B)plant and equipment "used up" in producing current output.
C)citizenship differences among income recipients.
D)government transfer payments minus tax revenues.

Question

Quizplus · Accepted Answer

Depreciation in the national income accounts refers to the decrease in the value of plant and equipment that is "used up" in producing current output. It is deducted from Gross Domestic Product (GDP) to arrive at Net Domestic Product (NDP).

The Term "Depreciation" in the National Income Accounts Refers to