Economics Part A

GDP and NDP

Gross Domestic Product (GDP) and Net Domestic Product (NDP) on

It has been shown that NDP (Net Domestic Product) equals GDP (Gross Domestic Product), minus depreciation. If the amount of depreciation is known, then the previous table can be used to calculate net investment and NDP, as shown in the following table.

Example:

Assume that Country E has yearly depreciation of $50. This amount is subtracted from gross investment of $300, leaving net investment of $250. Uses have now fallen to $950, which is also the value of NDP.

GDP and NDP543GDP  and NDP