How do I find consumption of fixed capital in macroeconomics?

Economics Dec 15, 2020

Expert Solution

In macroeconomics, consumption of fixed capital is taken as depreciation. It is the cost of using fixed capital for a specific period of time in the process of generating or producing output. It is the decline in the value of any capital in an accounting period.

Consumption of fixed capital (depreciation) is used in macroeconomics while calculating national income. It is subtracted from the purchased price of any asset so that net national income can be calculated.

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