A reduction in the value of capital goods over time due to their use in production is called:

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Depreciation is the term used to describe the reduction in the value of capital goods over time due to their use in production. This reduction is caused by wear and tear, obsolescence, and other factors that decrease the asset's usefulness or value. Depreciation is calculated by dividing the cost of the asset by its useful life and then subtracting that value from the asset's original cost.

A Reduction in the Value of Capital Goods Over Time