Gross private domestic investment exceeds depreciation in an economy that experiences
expanding production capacity.

Question

Quizplus · Accepted Answer

Gross private domestic investment refers to the amount invested in capital goods, such as machinery and equipment, that are used to produce goods and services. Depreciation, on the other hand, refers to the decrease in value of these capital goods over time due to wear and tear. If gross private domestic investment exceeds depreciation, it indicates that there is an increase in the stock of capital goods, which in turn leads to expanding production capacity.

Gross Private Domestic Investment Exceeds Depreciation in an Economy That