Question

If Net Domestic Product (NDP) is $50 less than Gross Domestic Product (GDP), we know that a. depreciation equals $50. b. inventories decreased over the year. c. net investment equals $50. d. inventories increased over the year.

Answer 1

Answer:

The answer is a) depreciation equals $50.

Explanation:

The net domestic product (NDP) equals the gross domestic product (GDP) minus depreciation on a country's capital goods. Thus the only relevant answer to the scenario will be a) since NDP is 50$ less than the Gross domestic product. The net domestic product (NDP) equals the gross domestic product (GDP) minus depreciation on a country's capital goods.

This depreciation over the year can be in the form of housing, vehicle, or machinery deterioration.