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Investment in Gold reduces supply of money needed for accelation in economic growth. To that extent that affects growth of GDP.

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11y ago

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Why is investment so important to GDP?

investment is part of output, so if we have a low investment, we will have a lower GDP holding all other factors constant.


Are mutual funds an investment or saving?

for GDP an investment is saving.


What is included in the calculation of investment GDP?

Investment GDP includes spending on business equipment, structures, and residential construction. It also includes changes in business inventories.


What resulted in the increase of GDP?

Greater levels of investment


How is GDP calculated using the expenditures approach?

GDP = Consumption + Investment + Government Purchases + Net Exports


Why must saving equal planned investment at equilibrium GDP in the private closed economy?

Saving must equal planned investment at equilibrium GDP in the private closed economy because leaking of saving that exceeds the injection of investment causes a level of GDP that cannot be sustained. Having a leaking of saving that is lower than the injection of investment causes the GDP to drive upward. In either case is bad to not have them at equilibrium.


Exports have the same effect on the current size of GDP as?

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What would result in increase in GDP?

Greater levels of investment


What is the relationship between investment in human capital and GDP?

teeth


How does an investment in human capital and capital goods affect GDP?

The more you invest in human capital the higher your GDP goes.


Which of these would not be considered a private investment when calculating the GDP?

stocks and bonds.


IF GDP is 6000net investment is 200Goernment Purchaser is 1100Gross investment is 800Consumption is 4000 and Government budget surplus is 30 then find the NDP?

If GDP is $6000,net investment is $200,Government Purchaser is $1100,Gross investment is $800,Consumption is $4000 and Government budget surplus is $30 then find the NDP