Suppose, at the beginning of the year, there are ten cranes in the economy. During the course of the year, two cranes wear out and are replaced. At the same time, net investment is equal to two cranes. Gross investment is equal to 4 cranes.

Suppose, at the beginning of the year, there are ten cranes in the economy. During the course of the year, two cranes wear out and are replaced. At the same time, net investment is equal to two cranes. Gross investment is equal to 4 cranes.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 1.3P

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Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems:

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Hi so this is a question regarding GDP using the income vs expenditure approach. I’m having trouble with my gross investments vs net investments. Can you please explain which equation I would use to solve this question? Do you add or subtract net investments for gross investments?

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The correct answer is shown.
Suppose, at the beginning of the year, there are ten cranes in the economy. During the course of the year,
two cranes wear out and are replaced. At the same time, net investment is equal to two cranes. Gross
investment is equal to 4 cranes.
Sorry, your answer is incorrect.
You wrote X 10 instead of 4.
Gross investment is the dollar value of all new capital purchased and the expansion of inventories.
Challenge
OK
ASSIGNMENT PROGRESS: IS 4 - Measuring Output and Income 80%

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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