The only difference between Gross Domestic Product and Net Domestic Product is that the latter excludes

Question

Quizplus · Accepted Answer

Net Domestic Product (NDP) is calculated by subtracting the depreciation (wear and tear) of the nation's capital (machines, buildings, etc.) from Gross Domestic Product (GDP). This is because GDP counts the total value of goods and services produced in a country, including investment in capital goods, but NDP only measures the net value of goods and services produced, after accounting for the depreciation of capital. Military spending and leisure time are not relevant for calculating either GDP or NDP.

The Only Difference Between Gross Domestic Product and Net Domestic