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they both have the same influential factors

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Zora Daniel

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

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

they both have the same influential factors


What is the relationship between human capital and GDP?

it is that the human capital is one thing and the gdp is another thing.


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

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


What is the relationship between aggregate expenditure and real GDP?

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.


What is the relationship between net exports and GDP?

The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise


Why does higher saving lead to higher GDP in the future?

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.


Why does investment spending rise and fall with the overall level of GDP?

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.


How does a higher level of saving lead to higher gdp in the future?

Because more capital is available for investment, leading to higher output through capital deepening


The relationship between current account balance and GDP?

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.


What is the relationship between oil price and GDP of a country?

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?


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.