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Gross domestic product and gross investment are measured _____
Gross domestic product and gross investment are measured _____. Net domestic product and net investment are measured _____.
a. Before the depreciation of capital; after the depreciation of capital,
b. After the depreciation of capital; before the depreciation of capital,
c. Excluding net exports; including net exports,
d. Excluding exports; including exports.
Expert Solution
The correct answer is a. Before the depreciation of capital; after the depreciation of capital,
Gross domestic product and gross investment are measured by all fixed assets, investments, and unsold stock before being subject to depreciation. Net domestic product and net investment are measured all fixed assets, investments, and unsold stock after depreciation.
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