Gross private domestic investment is an important determinant of how severe recessions will be mitigated.

Question

Quizplus · Accepted Answer

Gross private domestic investment refers to the amount of investment made in the economy by businesses and individuals. During a recession, if gross private domestic investment remains high or increases, it can help mitigate the severity of the recession by creating jobs and stimulating economic growth. Conversely, if gross private domestic investment declines significantly, it can worsen the recession. Therefore, gross private domestic investment is an important determinant in mitigating the severity of recessions.

Gross Private Domestic Investment Is an Important Determinant of How