The Acme Stereo Company had a capital stock of 24 million at the beginning of the year. At the end of the year, the firm had a capital stock of 20 million. Thus its
A) net investment was some amount but we need more information to determine the amount.
B) net investment was 4 million for the year.
C) gross investment was zero.
D) net investment was -4 million for the year.
Question 2
Which of the following is used to calculate the standard of living?
A) real GDP/population
B) ((real GDP in the current year - real GDP in previous year)/real GDP in previous year) 100
C) the one-third rule
D) real GDP/aggregate hours
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