Question

Difference between gross national product and net national product

Answer 1

The difference between NNP and NDP is net foreign factor income.In the same way that NDP is derived from GDP by subtracting capital depreciation, specifically the capital consumption adjustment (CCA), NNP is derived from GNP by subtracting the capital consumption adjustment.

Answer 2

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Gross Investment is referred to as the total expenditure that is made for buying capital goods over a time period, without accounting for depreciation.

Net Investment is the actual addition that is made to capital stock in a given period.