Question

After calculating \(GDP_{MP}\), which items are deducted to obtain \(NDP_{FC}\)?

Options

• Private consumption and imports

• Depreciation and Net Indirect Taxes

• NFIA and subsidies

• Exports and government investment

Answer 1

Depreciation and Net Indirect Taxes are deducted from \(GDP_{MP}\) to obtain \(NDP_{FC}\). This removes capital consumption and adjusts market prices to factor cost.