Nominal gross private domestic investment was $1888.0 billion in 2008 and rose to $2057.4 billion...

Question:

Nominal gross private domestic investment was $1888.0 billion in 2008 and rose to $2057.4 billion in 2009.

The chain-weight price index for gross private domestic investment was 106.6 for 2008 and 110.3 for 2009, where 2005 was the base year.

Calculate the percent change in real gross private domestic investment (rounded to the nearest percentage point) from 2008 to 2009.

Gross Private Domestic Investment

The investment expenditure undertaken by private domestic business entities is called Gross private domestic investment. This investment can be in any form such as purchase of building, power plant or machines. In gross private domestic investment, those capital goods are also included which are used to replace depreciated capital.

Answer and Explanation:

Real gross domestic investment will be calculated by dividing Nominal gross domestic investment by chain-weighted price index and then multiplying it...

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Gross Private Domestic Investment: Definition & Formula

from Introduction to Business: Homework Help Resource

Chapter 24 / Lesson 13
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