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.

Answer rating: 100% (QA)

2 In macroeconomics an investment typically refers to spending on capital goods that will be used fo... View the full answer