In the national income accounts,depreciation is called

Name: In the national income accounts,depreciation is called
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Depreciation is the decrease in the value of a capital asset over time due to wear and tear or obsolescence. In the national income accounts, this decrease in value is considered as a cost of producing goods and services because it represents the decline in usefulness of the asset. Therefore, depreciation is recorded as "consumption of fixed capital" in the national income accounts.

In the National Income Accounts,depreciation Is Called