To derive net domestic product (NDP)from gross domestic product (GDP),we must subtract ________________ from GDP.
A) the capital consumption allowance
B) gross private domestic investment
C) imports
D) inventory investment
E) the statistical discrepancy

Question

Quizplus · Accepted Answer

To derive NDP from GDP, we must subtract the capital consumption allowance, which is the estimated amount of depreciation and wear and tear on existing capital goods during the year. This adjustment is necessary to accurately measure the total output of goods and services that were produced during the year.

To Derive Net Domestic Product (NDP)from Gross Domestic Product (GDP),we