In 2007, Franceʹs GDP totalled $1.9 trillion and in 2006 GDP was $1.8 trillion. The total amount spent on new capital in 2007 was $357 billion and in 2006 was $335 billion. Suppose that depreciation is 12 percent of GDP. investment in 2007 was billion.

Question

Quizplus · Accepted Answer

Net investment is equal to gross investment minus depreciation. In 2007, gross investment was $357 billion and depreciation was 12% of GDP, or $1.9 trillion * 0.12 = $228 billion. Therefore, net investment in 2007 was $357 billion - $228 billion = $129 billion.

In 2007, Franceʹs GDP Totalled $1