Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given time period (gross national product or GNP) minus depreciation. The net domestic product (NDP) is the equivalent application of NNP within macroeconomics, and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.
Depreciation (also known as consumption of fixed capital) measures the amount of GNP that must be spent on new capital goods to maintain the existing physical capital stock.
NNP is the amount of goods in a given year which can be consumed without reducing future consumption. Setting part of NNP aside for investment permits capital stock growth (see economic growth and capital formation), and greater future consumption.
NNP also equals total compensation of employees + net indirect tax paid on current production + operating surplus.
Famous quotes containing the words net, national and/or product:
“it was you untying the snarls and knots,
the webs, all bloody and gluey;
you with your twelve tongues and twelve wings
beating, wresting, beating, beating
your way out of childhood,
that airless net that fastened you down.”
—Anne Sexton (1928–1974)
“Not one of our national officers ever has had a dollar of salary. I retire on full pay!”
—Susan B. Anthony (1820–1906)
“A gentleman opposed to their enfranchisement once said to me, “Women have never produced anything of any value to the world.” I told him the chief product of the women had been the men, and left it to him to decide whether the product was of any value.”
—Anna Howard Shaw (1847–1919)