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Other Measures of Total Production and Total Income
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Other Measures of Total Production and Total Income
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11. Gross Domestic Product (GDP) and Consumer Price Index (CPI) / Other Measures of Total Production and Total Income / Problem 3
Problem 3
Why might a country prefer to use Net Domestic Product (NDP) over Gross Domestic Product (GDP) for certain analyses?
A
NDP provides a clearer picture of sustainable economic production by accounting for depreciation.
B
NDP is always higher than GDP, indicating better economic performance.
C
NDP measures only government spending, unlike GDP.
D
NDP includes foreign investments, making it more comprehensive.
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