Net domestic product (NDP)is calculated by measuring GDP and subtracting

Question

Quizplus · Accepted Answer

Net domestic product (NDP) is the measure of the economic output of a country after adjusting for depreciation. Depreciation is the decline in the value of capital goods over time due to wear and tear, obsolescence, and other factors. Therefore, to calculate NDP, we need to subtract the depreciation from the gross domestic product (GDP). Transfer payments, indirect sales taxes, and goods and services produced overseas are not subtracted from GDP to calculate NDP.

Net Domestic Product (NDP)is Calculated by Measuring GDP and Subtracting