Which of the following equation is appropriate for determining the Net Domestic Product (NDP)?
- NDP = GNP - depreciation
- NDP = GDP + Net Income from abroad
-
NDP = GDP - depreciation
- NDP = GDP * Net Income from abroad
The correct answer is: C
Explanation
Net domestic product (NDP) is an annual measure of the economic output of a nation that is adjusted to account for depreciation and is calculated by subtracting depreciation from the gross domestic product (GDP).