# Net National Product (NNP)

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## Definition of 'Net National Product (NNP)'

The net national product (NNP) is a measure of the total value of goods and services produced by a country's economy in a given year. It is calculated by subtracting depreciation from gross national product (GNP). Depreciation is the amount of wear and tear on a country's capital stock, such as buildings and machinery.

The NNP is a more accurate measure of a country's economic output than GNP because it takes into account the fact that some of the goods and services produced in a given year will be used up in the production of other goods and services. For example, if a country produces 100 cars in a year, but 10 of those cars are used up in the production of other goods, then the NNP will be 90 cars.

The NNP is also a more accurate measure of a country's economic well-being than GNP because it takes into account the fact that some of the goods and services produced in a given year will be exported to other countries. For example, if a country produces 100 cars in a year, and 20 of those cars are exported to other countries, then the NNP will be 80 cars.

The NNP is an important economic indicator because it can be used to track a country's economic growth over time. It can also be used to compare the economic output of different countries.

The NNP is calculated by the following formula:

NNP = GNP - Depreciation

Where:

* NNP is the net national product
* GNP is the gross national product
* Depreciation is the amount of wear and tear on a country's capital stock

The NNP is a more accurate measure of a country's economic output than GNP because it takes into account the fact that some of the goods and services produced in a given year will be used up in the production of other goods and services. For example, if a country produces 100 cars in a year, but 10 of those cars are used up in the production of other goods, then the NNP will be 90 cars.

The NNP is also a more accurate measure of a country's economic well-being than GNP because it takes into account the fact that some of the goods and services produced in a given year will be exported to other countries. For example, if a country produces 100 cars in a year, and 20 of those cars are exported to other countries, then the NNP will be 80 cars.

The NNP is an important economic indicator because it can be used to track a country's economic growth over time. It can also be used to compare the economic output of different countries.

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