Share This Article:

Economic Definition of gross domestic product and net domestic product. Defined.

Offline Version: PDF

Term gross domestic product and net domestic product Definition: Gross domestic product (GDP) is the total market value of all final goods and services produced within the political boundaries of an economy during a given period of time, usually a year. Net domestic product (NDP) is the total market value of all final goods and services produced within the political boundaries of an economy during a given period of time, usually a year, after adjusting for the depreciation of capital. The key difference between these two production measures is the phrase "after adjusting for the depreciation of capital." This phrase is officially termed capital consumption adjustment.

 

« gross domestic product and national income | expenditures gross domestic product »

Permalink: https://glossary.econguru.com/economic-term/gross+domestic+product+and+net+domestic+product

Alphabetical Reference to Over 2,000 Economic Terms