why-might-a-country-prefer-to-use-net-domestic-product-ndp-over-gross-domestic-p

Question

Why might a country prefer to use Net Domestic Product (NDP) over Gross Domestic Product (GDP) for certain analyses?

Accepted Answer

NDP provides a clearer picture of sustainable economic production by accounting for depreciation.

Answer

NDP is always higher than GDP, indicating better economic performance.

Answer

NDP measures only government spending, unlike GDP.

Answer

NDP includes foreign investments, making it more comprehensive.