Gross domestic product is
A) NDP plus net exports.
B) NDP plus taxes.
C) NDP plus depreciation.
D) NDP less changes in inventories.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) is the total market value of all final goods and services produced within a country's borders in a given time period. NDP (Net domestic product) is GDP minus depreciation. Therefore, Option C is correct - GDP is NDP plus depreciation. Option A is incorrect because net exports are already included in GDP. Option B is incorrect because taxes are not added to NDP to calculate GDP. Option D is incorrect because changes in inventories are already accounted for in the calculation of GDP.

Gross Domestic Product Is