An increase in depreciation will do which of the following?

Question

Quizplus · Accepted Answer

Depreciation is a measure of the wearing out, consumption, or other loss of value of a fixed asset. An increase in depreciation reduces Net Domestic Product (NDP) because NDP is calculated by subtracting depreciation from Gross Domestic Product (GDP). However, an increase in depreciation does not affect GDP itself, as GDP measures the total value of all goods and services produced over a specific time period without adjustments for depreciation.

An Increase in Depreciation Will Do Which of the Following