I have studied these 1) Gross value added= value of output- intermediate consumption. 2) Net value added= gross value added- depreciation. But how could we say "Net value added = Gross value of output – Value of intermediate consumption"? This formula from the source I have underlined. Source: https://courses.lumenlearning.com/boundless-economics/chapter/measuring-output-using-gdp/enter image description here


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