Gross capital formation is important in expanding an economy's potential to grow.

Question

Quizplus · Accepted Answer

Gross capital formation refers to the total amount of investment made in a country's economy, including both public and private investment. This investment in physical and human capital, such as buildings, infrastructure, technology, and education, contributes to increasing productivity and improving the efficiency of the economy. As a result, gross capital formation is essential for expanding an economy's potential to grow and can lead to long-term economic development.

Gross Capital Formation Is Important in Expanding an Economy's Potential