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  1. Depreciation is equal to
    1. GNP - NNP
    2. NNP - GNP
    3. GNP _ Personal Income
    4. Personal Income - Personal Taxes
Correct Option: A

Depreciation is equal to GNP _ NNP (Gross national products-Net national products) Depreciation is also known as consumption of fixed capital. It is the wear and tear to the physical assets. It measures the amount of GNP that must be spent on new capital goods to maintain the existing physical capital stock.



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