How to calculate NDP?
Understand the Problem
The question is asking how to calculate the Net Domestic Product (NDP), which involves understanding the formula and components needed for the calculation, such as Gross Domestic Product (GDP) and depreciation.
Answer
Net Domestic Product (NDP) = GDP - Depreciation
The final answer is Net Domestic Product (NDP) = GDP - Depreciation
Answer for screen readers
The final answer is Net Domestic Product (NDP) = GDP - Depreciation
More Information
NDP provides a more accurate measure of the economic well-being of a country by accounting for the depreciation of capital goods.
Tips
Ensure all forms of capital depreciation are included to avoid underestimating the NDP.
Sources
- How to Calculate Net Domestic Product (NDP) - investopedia.com
- Net Domestic Product - Macroeconomic Analysis - economicsdiscussion.net
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