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Author Question: Which of the following would increase the level of planned real investment? A) an expectation of ... (Read 90 times)

SAVANNAHHOOPER23

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on: Jun 30, 2018
Which of the following would increase the level of planned real investment?
 
  A) an expectation of higher future profits B) an expectation of higher future costs
  C) an increase in business taxes D) an increase in the interest rate

Question 2

Why are inputs not included in the calculation of the gross domestic product ?
 
  What will be an ideal response?


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Fayaz00962

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

Gross domestic product of a country is the final value of all goods and services produced within the borders of the country during a particular year. Therefore, the value of raw materials is implicitly counted when we value the final good. If the value of the input is counted separately, it would result in double-counting.


SAVANNAHHOOPER23

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Reply #2 on: Jun 30, 2018
Thank you :)


Fayaz00962

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Reply #3 on: Jun 30, 2018
Happy to help you


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