Depreciation is included in GDP, but excluded from NNP.

Name: Depreciation is included in GDP, but excluded from NNP.
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Depreciation, which refers to the decrease in value of a physical asset over time, is included in the calculation of GDP (Gross Domestic Product) as it reflects the consumption of fixed capital. However, it is excluded from NNP (Net National Product) as NNP subtracts the value of depreciation from GDP to arrive at the net income earned by individuals and businesses within a country.

Depreciation Is Included in GDP, but Excluded from NNP