Question

Que. No. 16
Which of the following formulas is used to calculate GGDP?
A) GDP- NNCC
B) GDP- Depriciation
C) GDP+C+I+G
+
D) GDP+Net factor income from abroad​

Answer 1

The formulas is used to calculate GGDP is GDP- NNCC and option (A) is correct.

Explanation:

• GGDP =  GDP- NNCC ( Net Natural Capital Consumption).

• The following is  a  drawback of GGDP:

1. Cannot measure economic sustainability
2. Difficult to measure natural capital in terms of money
3.  Not able to capture the economic welfare aspects of GDP

•  The following is  not  a  drawback of GGDP:

           Provides an alternative to the conventional measures of the national income .

Thus, the formulas is used to calculate GGDP is GDP- NNCC and option (A) is correct.

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