The formula to derive it may be written like: NNP = GNP ā Depreciation. or it can also be defined as, NNP = GDP + Income from Abroad ā Depreciation. Below are some of the different uses of the concept of NNP: NNP is the āNational Incomeā (NI) of an economy. Though all the GDP, GNP and NDP are generally termed as ānational incomeā as
NDP will be greater than GDP. b. NI will be greater than GDP. c. PI will be greater than NI. d. DPI will be greater The CPI and he GDP Price Index (GDP deflator) are both: a. well suited to indexing wages, household income, or the value of household assets. NNP (Net National Product) is the total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for. Thus, NNP= GNP - Depreciationa. Using the above data, determine GDP and NDP by the expenditure method ONLY. ANSWERS: GDP = $388 GDP = C + Igross + G + Xnet Igross = Inet + depreciation = 33 + 27 = 60