What is net domestic capital formation?in answers why in solution net import (-)and dep added?What is this?

Shivang,

Net Domestic Capital Formation = Net Domestic Fixed Capital Formation + Change in Stock

The formula to calculate $$\begin{gathered} {\mathrm{GDP}}_{\mathrm{MP}} \mathrm{by} \mathrm{expenditure} \mathrm{method} \mathrm{is} \\ \mathrm{GDPMP} = \mathrm{Private} \mathrm{final} \mathrm{consumption} \mathrm{expenditure} + \mathrm{Government} \mathrm{final} \mathrm{consumption} \mathrm{expenditure} + \mathrm{Gross} \mathrm{Domestic} \mathrm{Capital} \mathrm{Formation} + \mathrm{Net} \mathrm{Exports} \end{gathered}$$
Since, in the question, Net domestic capital formation is given, that is why, depreciation has been added. Since, there are no exports, therefore, net imports get subtracted.

To know more about gross domestic capital formation, refer to the following link.

https://www.meritnation.com/ask-answer/question/please-teach-me-these-components-gross-domestic-capital-form/economics/3286670


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