they both have the same influential factors
they both have the same influential factors
The more you invest in human capital the higher your GDP goes.
There is a direct proportional relationship between aggregate expenditure and real GDP. Aggregate expenditure is actually equal to real GDP. This is different from the planned expenditure.
The reason higher saving leads to higher GDP in the future is because additional capital becomes available for investment, which results in higher output via capital deepening. GDP stands for gross domestic product.
The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise
teeth
they both have the same influential factors
it is that the human capital is one thing and the gdp is another thing.
The more you invest in human capital the higher your GDP goes.
There is a direct proportional relationship between aggregate expenditure and real GDP. Aggregate expenditure is actually equal to real GDP. This is different from the planned expenditure.
The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise
The reason higher saving leads to higher GDP in the future is because additional capital becomes available for investment, which results in higher output via capital deepening. GDP stands for gross domestic product.
a good indicator is the business cycle diagram and the difference between real GDP and trend rate( which the g'ment is targeting) if real is below trend it is a good indicator that the economy is in a recession. Because this is the case firms are less likely to be spending on capital goods aka. investment spending. They may decide to fix current capital goods.
Because more capital is available for investment, leading to higher output through capital deepening
The relationship between the current account balance and the GDP is that they both reflect the production in the given economy. They both deal with the net production.
Well we know that oil prices are a major cost for firms and consumers. When oil prices increase consumption and investment will fall, leading to a fall productivity and in aggregate demand, which we all know is equivalent to GDP.... right?
investment is part of output, so if we have a low investment, we will have a lower GDP holding all other factors constant.