The market value of all final goods and services produced in a country's domestic territory by normal citizens during an accounting year, including net factor income from overseas, is defined as GNP at market price. GNP is the most fundamental concept in national income accounting. GNP (MP) = GDP (MP) + Net factor income from abroad. It may be the case that after certain time these capital goods needs replacement. The capital used for the this wear and tear and is not part of any body’s income. Thus we subtract depreciation from the GDP to get Net GDP. Net GDP = GDP – Depreciation. Similarly, Net National Product (NNP) = GNP – depreciation. (र in crores) (i) Government purchase of goods and services. 48 (ii) Net indirect taxes. 46 (iii) Depreciation. 44 (iv) Gross investment. 48 (v) Net export - 8 National income accounting equation is an equation that shows the relationship between income and expense of an economy and other categories. It is represented by the following equation: Y = C + I + G + (X – M) Where. Y = National income. C = Personal consumption expenditure. I = Private investment. Hello students in today lecture i have discussed ndp,nnp, factor cost, market price, real gdp and nominal gdp and methods to calculate gdp.ndp is when we ded Formula: NNP (at factor cost) = NDP(at market price)- Indirect tax + Subsidies + Net Factor Income from Abroad. Was this answer helpful? 0. Similar Questions. Q1. UwbIAv3.

what is ndp and nnp