To derive net domestic product (ndp) from gross domestic product (gdp), we must subtract from gdp.

Depreciation

Explanation:

To derive net domestic product ( NDP ) from gross domestic product ( GDP ) you will have to subtract the depreciation from the GDP.

NDP is used to account for the capital that was consumed by the people over the year in the form of basic amenities like housing and liabilities like automobiles and other form of accessories and to calculate this we will have to remove the depreciation value of this consumed goods from the gross domestic product of the country over the same year. while GDP is the overall market values of goods and services produced usually within a year.

depreciation is the reduction in value of goods and services or the reduction in value of an good bought over time due to certain conditions like wear and tear.

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