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3 December, 05:24

The difference between GDP and NDP The accumulation of capital stock The consumption of fixed capital

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  1. 3 December, 05:30
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    The consumption of fixed capital

    Explanation:

    GDP is Gross Domestic Product : Gross value of all final (finished) goods produced within an economy during an year.

    NDP is Net Domestic Product : Net value of all final (finished) goods produced within an economy during an year.

    GDP is the the production valued at its gross original price i. e at price excluding depreciation cost.

    NDP is production valued at its net price, after deducting depreciation cost from gross value.

    Depreciation is also called Consumption of Fixed Capital.

    GDP - Depreciation/Consumption of fixed capital = NDP
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