All the following are correct except:
A) NNP = GNP - depreciation.
B) GNP = gross domestic product + net factor income from abroad.
C) NDI = GDP - net indirect taxes + capital consumption.
D) aggregate spending = C + I + G + NX = GDP.

Question

Quizplus · Accepted Answer

NDI (National Disposable Income) is calculated as the Net National Product (NNP) at factor cost plus net current transfers from the rest of the world. The formula provided in option C incorrectly describes NDI calculation. It should be NNP at factor cost - Indirect Taxes + Subsidies, not GDP - net indirect taxes + capital consumption.

All the Following Are Correct Except