Since GDP does not take into account any depreciation of the capital stock that may have occurred, NNP is sometimes a better measure of how the economy is doing.

Question

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NNP (Net National Product) accounts for depreciation by subtracting it from the Gross National Product (GNP), providing a more accurate measure of the economy's performance by reflecting the loss in value of the capital stock.

Since GDP Does Not Take into Account Any Depreciation of the Capital