Asked by Julia Kochman on May 20, 2024

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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.
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Arsany AboudaMay 20, 2024
Final Answer :
GDP ($5.2 trillion)- depreciation ($.4 trillion)= NDP ($.48 trillion)- indirect business taxes ($4.5 trillion)= national income ($4.35 trillion)