Question 1
Net investment is
◦ gross investment minus depreciation.
◦ gross investment plus depreciation.
◦ depreciation minus gross investment.
◦ GNP minus final sales.
Question 2
Depreciation is
◦ the decrease in the overall price level.
◦ the additional capital stock in a year.
◦ the amount of used up machinery in a year.
◦ the amount of decline in business inventories.