The table below shows the values for several different components of GDP.
What is the value of total gross investment?
Investment refers to the accumulation of capital possessions such as inventory, structures, and equipment. Investment plays an important role in increasing the future productivity of a country.
- GDP: A macroeconomic indicator that measures the total output of new products for an economy during a specific period of time.
- Capital Goods: Reusable goods that are used to make goods and services in an economy.
- Consumption: The amount of spending on finished goods and services by households within an economy.
- Firms: A term used to describe producers in a market-based economy.
- Households: A term used to describe consumer units in a market-based economy.
Answer and Explanation:
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fromChapter 24 / Lesson 13
In this lesson, you will define the concept of gross private domestic investment (GPDI), list the factors that are used to determine it, and learn to calculate it using a simple formula.