Question

NNP is GNP plus the amount of depreciation in that time period.

1. True.
2. False.

Answer 1

The statement is true. Net national product (NNP) is calculated by taking gross national product (GNP) and subtracting the amount of depreciation.

Step-by-step explanation:

The statement is true.

Net national product (NNP) is calculated by taking gross national product (GNP) and subtracting the amount of depreciation. Depreciation refers to the reduction in value of physical capital over time due to aging.

NNP represents the net value created by a country's economic activities after accounting for the loss in value of capital.

For example, if the GNP is $100 and the depreciation is $10, the NNP would be $90.