If we deduct depreciation from GNP the measure of aggregate income that we obtain is called           .

The correct answer is Net National Product.

Key Points

• Net National Product (NNP):
  • NNP is obtained by subtracting depreciation value (i.e. capital stock consumption) from GNP.
  • Net National Product (NNP) = Gross National Product − Depreciation.​

Additional Information

• Gross Domestic Product (GDP):
  • It is the total money value of all final goods and services produced within the geographical boundaries of the country during a given period of time.
  • GDP = C + G + I
    • C = Consumption expenditure
    • G = Government expenditure
    • I = Investment expenditure

• Gross domestic product at market prices
  • Gross domestic product at market prices aims to measure the wealth created by all private and public agents in a national territory during a given period.
  • The way of measuring GDP at market prices is the production approach as the sum of added values of all activities which produce goods and services, plus taxes and minus subsidies on products.
• Personal Income: 
  • Income is obtained by nationals by subtracting corporate taxes and payments made for social securities provisions from national income and adding to it government transfer payments, business transfer payments and net interest paid by the government. 
  • Personal Income = National income – undistributed profits of a corporation – payments for social security provisions – corporate tax + government transfer payments + Business transfer payments + Net interest paid by the government.