In the national income accounts,depreciation is called

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Depreciation is the reduction in the value of an asset over time due to its age, wear and tear, and obsolescence. In the context of national income accounts, depreciation is considered as the consumption of fixed capital because it reflects the decline in the value of the capital stock used in the production process. This decline is treated as a cost of production, just like other inputs such as labor or raw materials.

In the National Income Accounts,depreciation Is Called