Please enable JavaScript.
Coggle requires JavaScript to display documents.
AGGREGATE DEMAND Aahana, Aarjav, Anika, Devraj, Rishika - Coggle Diagram
AGGREGATE DEMAND Aahana, Aarjav, Anika, Devraj, Rishika
-
-
INVESTMENT (I)
What is investment?
- Addition of the capital stock to the economy
Induced Investment is when firms spend money or capital to eventually increase their final output. To keep up with increasing demand in the market or their productivity.
Replacement investment does not add to the stock, just focuses on maintenance of current capital stock
Buying shares cannot be considered an investment because it is a form of savings. It is not capital and does not increase the final output.
Examples: Buying new machinery, upkeep and maintainence
-
-
-