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Q.

The difference between GDP and Depreciation is known as ____


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Detailed Solution

The difference between GDP and Depreciation is known as Net Domestic Product.
The Net Domestic Product or NDP is obtained by subtracting the values of depreciation of the nation's capital assets, such as vehicles, housing, etc., from the country's Gross Domestic Product (GDP). A wide gap between the GDP and NDP shows an increase in obsolescence value. More value of depreciation implies the need for more capital infusion into the economy.
 
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