Asked by Julia Kochman on May 20, 2024
Verified
If GDP is $5.2 trillion,depreciation is $400 billion,government spending is $800 billion,and indirect business taxes are $450 billion,how much is NDP (net domestic product)and national income?
National Income
The total value of all income earned by a nation's residents and businesses, including wages, rent, interest, and profits.
NDP
Net Domestic Product, which represents the total value of all goods and services produced within a country in a specific period, minus depreciation.
GDP
Gross Domestic Product, the total value of all goods and services produced within a country's borders, serving as a broad measure of economic activity.
- Learn about the different components that make up national income and understand the process for calculating it from GDP.
Verified Answer
Learning Objectives
- Learn about the different components that make up national income and understand the process for calculating it from GDP.
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