If gross investment is not large enough to replace the capital that depreciates in a particular year,

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If gross investment is not large enough to replace the capital that depreciates in a particular year, is net investment greater or less than zero? What happens to our production possibilities?

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The Macro Economy Today

ISBN: 978-1259291821

14th edition

Authors: Bradley R. Schiller, Karen Gebhardt

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Question Posted: May 03, 2018 08:11 AM

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If gross investment is not large enough to replace the capital that depreciates in a particular year,

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Net investment is less than zero The capital stock is ...View the full answer

The Macro Economy Today

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