Net investment equalsO gross investment plus depreciation.O gross investment minus depreciation.O capital plus depreciation.O new capital plus old capital.O the amount of national wealth. Macroeconomic equilibrium occurs whenO the economy is fully employed.O there is no inflation.O real GDP is equal to potential GDP.O the price level equals the potential price level.O the aggregate quantity demanded is equal to the aggregate quantity supplied.

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Answered: Net investment equals O gross…

Net investment equals O gross investment plus depreciation. O gross investment minus depreciation. O capital plus depreciation. O new capital plus old capital. O the amount of national wealth.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Net investment equals
O gross investment plus depreciation.
O gross investment minus depreciation.
O capital plus depreciation.
O new capital plus old capital.
O the amount of national wealth.

Macroeconomic equilibrium occurs when
O the economy is fully employed.
O there is no inflation.
O real GDP is equal to potential GDP.
O the price level equals the potential price level.
O the aggregate quantity demanded is equal to the aggregate quantity supplied.

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Why do large differences in capital per worker lead to relatively small differences in predicted GDP across countries? Workers exert more effort when they have less capital Capital has a high depreciation rate 4 O The exponent on capital in the production function is much lower than one O Capital is not an input in production