How does NDP differ from GDP?
What will be an ideal response?
The difference between NDP and GDP is the value of the consumption of fixed capital or depreciation allowance. GDP includes gross private investment expenditures. NDP includes net private investment expenditures after the depreciation allowance has been subtracted from gross investment.
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Liens __________ the moral hazard problem since the borrower is then __________ to sell the affected assets at its discretion
A) worsen; able B) worsen; unable C) ease; able D) ease; unable
Over time, housing shortages caused by rent control
a. increase, because the demand for and supply of housing are less elastic in the long run. b. increase, because the demand for and supply of housing are more elastic in the long run. c. decrease, because the demand for and supply of housing are less elastic in the long run. d. decrease, because the demand for and supply of housing are more elastic in the long run.
For a monopolistically competitive firm,
a. marginal revenue and price are the same. b. average revenue and price are the same. c. at the profit-maximizing quantity of output, price equals marginal cost. d. at the profit-maximizing quantity of output, price equals the minimum of average total cost.
If Gross Domestic Product (GDP) equals $900 billion, gross private investment expenditures are $200 billion, exports equal imports, and government spending is $400 billion, then
A. consumption expenditures are $200 billion. B. we cannot determine what expenditures on consumption are without more information. C. consumption expenditures are $300 billion. D. spending on consumer durables must be $400 million.