Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a failing stock of capital. Explain: “Though net investment can be positive, negative or zero it is impossible for gross investment to be less than zero.

Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a failing stock of capital. Explain: “Though net investment can be positive, negative or zero it is impossible for gross investment to be less than zero.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 3WNG

See similar textbooks

Similar questions

how to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital Consumption
Which of the following is an example of an investment or I when computing the real GDP______? A. B. C. D. A new furnace that I purchased to make my house more energy efficient. Computer chips by Dell to install in their personal computers. A 20 year old apartment building. The purchase of a new home by a married couple.
Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal: a) A large increase in the value of real estate, including private houses. b) A decline in the real interest rate. c) An increase in the rate of population growth. d) An increase in the Federal personal income tax.
Please answer fast please arjent help please ASAP
Define the term Net Investment?
Classify each of the following items as a final good or an intermediate good, and identify whether it is a component of consumption expenditure, investment, or government expenditure on goods and services: Item 1. Packing boxes bought by Amazon.com. Item 2. Starbuck's grande mocha frappuccino bought by a student. Item 3. A new limousine for the president. Item 4. New airplanes bought by United Airlines. Item 1 is and item 2 is A. an intermediate good; a final good that is consumption expenditure B. a final good that is consumption expenditure; a final good that is consumption expenditure O C. a final good that is consumption expenditure; a final good that is investment D. an intermediate good; a final good that is investment Item 3 is and item 4 is O A. an intermediate good; an intermediate good B. a final good that is government expenditure; a final good that is investment O C. an intermediate good; a final good that is investment O D. a final good that is government expenditure; an…
Which of the following is true about the components of GDP? When we buy stocks, this is economic investment. Net exports must always be a negative number. Government purchases make up the largest part of GDP. A refrigerator is a durable consumption good.
Explain why an economy’s output, in essence, is also its income.
A consumer expenditure survey reports the following information on consumer protein spending: Fish Chicken Beef Multiple Choice Multiple Choice 0.9 percent 1.4 percent Price $ 5.80 1.8 percent $3 $ 3.10 Using 2019 as the base year, by how much does a "cost of protein" index decrease between 2019 and 2020? 3.6 percent 2019 Quantity 5 14 7 Using 2019 as the base year, by how much does a "cost of protein index decrease between 2019 and 2020? Price $7 $ 1.50 $5 2020 Quantity 6 12 10 G
Aggregate consumption varies less than aggregate investment. Briefly explain why this is true assuming that consumption and investment decisions are taken by rational and forward-looking agents.
Given the following data for the economy, compute the value of the investment component of GDP. Government purchases of goods and services 22 Consumption expenditures 100 Exports 11 Imports 22 Change in inventories −13 Construction of new homes and apartments 20 Sales of existing homes and apartments 20 Government payments to retirees 26 Business fixed investment 21
A simple economy consists of three industries: agriculture, manifacturing and services. The input-output matrix associated with this economy is A M A 0.1 0.2 0.2 M 0.2 0.2 0.1 S 0.1 0.1 0.3 Find the gross output of goods needed to satisfy a consumer demand for 170 million dollars worth of agricultural products, 150 million dollars worth of manufactured products, and 180 million dollars worth of services. million dollars worth of agricultural products, and million dollars worth of manufactured products. million dollars worth of services.