Share This Article:

Economic Definition of capital consumption adjustment. Defined.

Offline Version: PDF

Term capital consumption adjustment Definition: The official item in the National Income and Product Accounts maintained by the Bureau of Economic Analysis that measures the macroeconomy's capital depreciation during a given time period, usually one year. The capital consumption adjustment, which is also commonly termed the capital consumption allowance, both of which conveniently go by the abbreviation of CCA, is subtracted from gross domestic product (GDP) to calculate net domestic product (NDP). The CCA is also subtracted from gross private domestic investment to calculate net private domestic investment.

 

« capital account surplus | capital consumption allowance »

Permalink: http://glossary.econguru.com/economic-term/capital+consumption+adjustment

Alphabetical Reference to Over 2,000 Economic Terms