Final answer:
Depreciation is subtracted from GNP to obtain NNP.
Step-by-step explanation:
Depreciation is subtracted from the Gross National Product (GNP) to obtain the Net National Product (NNP).
Depreciation refers to the decline in value of fixed capital over time. Fixed capital includes assets such as buildings, machinery, and equipment used in the production process.
By subtracting depreciation from GNP, we account for the wear and tear or obsolescence of these productive assets to arrive at NNP, which represents the value of the final products and services produced by a country's residents within a given period.