The term 'investment' as used by economists
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Carefully explain the difference between the term "investment" as used by economists and the way it is used in everyday life. Use this to explain the major components of investment in the GDP accounts and why they are classified in this way. If a firm buys a ream of paper for a copier, which will be used within a year, how does this count towards investment?
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The term 'investment' as used by economists is entailed.
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The term 'investment' as used by economists entails an inflow of money into the country's finances which can help increase the GDP of the country, thereby increasing the earning and consumption of the population of the country on a holistic scale. On the other hand, the term 'investment' used in everyday ...
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