What is Net Domestic Product – NDP ?
Definition of Net Domestic Product – NDP
The complete market value of all final products or services produced within the political limitations of an economic system during a given time frame, usually a year, after modifying for the devaluation of investment.
Brief Explanation of Net Domestic Product – NDP
The net domestic product, usually shortened NDP, is one of five key Nationwide Earnings and Product Accounts actions revealed regularly (every three months) by the Institution of Economic Analysis. The other four actions are a GDP, national income, personal income, and not reusable income. The net domestic product has mostly changed a comparable phrase, net national manufacturing. Net domestic product (NDP) results from modifying GDP for the amount of investment devaluation that occurs during manufacturing. As the phrase “gross” implies, “gross” domestic product is the grand complete of all manufacturing throughout the market. In contrast, as the phrase “net” indicates, “net” domestic product subtracts or “nets out” the deterioration of investment products from the complete value. Net domestic product changed an old standard that had persisted for several decades–net national product. The regards between net domestic product and the net national product are the same as that of GDP and complete national product.