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Gross National Product – Depreciation Allowance = ?
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- Per Capita Income
- Gross Domestic Product
- Personal Income
- Net National Product
- Per Capita Income
Correct Option: D
Net National product (NNP) is Gross National Product minus a depreciation allowance for the wearing out of machines and buildings during the period. In other words, NNP= Gross National Product – Depreciation Allowance. Since NNP counts only the net additions to the nation’s stock, it is less than GNP.