What is the difference between gross domestic product (GDP) and net domestic product (NDP)?
A) NDP = GDP / Price index
B) NDP = GDP + Net productivity adjustment
C) NDP = GDP + Net exports
D) NDP = GDP - Depreciation of capital

Question

Quizplus · Accepted Answer

NDP is calculated by subtracting the depreciation of capital from GDP. Depreciation refers to the wear and tear on an economy's stock of equipment and structures, such as factories and machines, over a given period.

What Is the Difference Between Gross Domestic Product (GDP) and Net