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Describe the three types of birthmarks discussed in the chapter and the likelihood of each resolving without treatment.
Gross Investment
The total amount spent on purchases of new capital assets plus replacement of depreciated assets.
Depreciation
The gradual decrease in the economic value of the capital stock of a firm, nation, or other entity, either through physical wear and tear or through obsolescence.
Capacity Utilization Rate
A measure of how well an entity is using its potential output capacity, often expressed as a percentage.
Recessions
Periods of economic decline marked by falling GDP and other economic indicators, often resulting in higher unemployment rates.
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