Suppose GDP at market price is $300 billion, depreciation is $30 billion and net indirect taxes are $20 billion. What is net domestic income? Explain why depreciation creates a discrepancy between GDP and net domestic income. Calculate GDP at basic price in this economy and explain why net indirect taxes create a difference between GDP at market price and GDP at basic price.

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The Answer of Suppose GDP at market price is $300 billion, depreciation is $30 billion and net indirect taxes are $20 billion. What is net domestic income? Explain why depreciation creates a discrepancy between GDP and net domestic income. Calculate GDP at basic price in this economy and explain why net indirect taxes create a difference between GDP at market price and GDP at basic price.

Suppose GDP at Market Price Is $300 Billion, Depreciation Is