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2.What is considered an investment in macroeconomics? Suppose that LeBron James buys a new contemporary house for himself. Is this considered an investment? Explain. What
2. What is considered an investment in macroeconomics? Suppose that LeBron James buys a new contemporary house for himself. Is this considered an investment? Explain. What about if the company "Wabco" buys $1 million worth of stocks in existing companies.
3. Are the following examples of investment?
a) the purchase of a new robot for painting car parts
b) a new X-ray machine for a doctor’s office
c) a purchase of $1000 in Google stock
d) new computer software for quality control in production of chemicals
e) a new minivan your family purchases for family trips
f) a purchase of a $500 savings bond for a graduation present
4. Does Investment always equal Savings in an economy? Explain.
5. What is productivity? How is productivity related to the technological development? Give an example.
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