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Which one of the statements is incorrect regarding the business investment (also known as firm investment or I) component of the U.S. GDP? a. Business
Which one of the statements is incorrect regarding the business investment (also known as firm investment or I) component of the U.S. GDP?
a. Business investment (I) is only 1520% of the US GDP. Comprises the biggest percentage of the U5. GDP. Includes things businesses purchase such as inventories, warehouses, and forklifts. Can swing more than the consumption (C) part of GDP because far fewer people are making strategic decisions (e.g., a handful of CEOs). For example, if the CEOs of the 10 biggest public companies decide to reduce their investments, this could have a massive negative impact on investment as a part of GDP, Which of the following is not one of the key components of a recession? A. Rising unemployment B. Declining real income C. Declining spending D. Rising standard of livingStep by Step Solution
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