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Gross Investment
The total amount spent on purchases of new capital and on replacing depreciated capital within an economy.
Net Investment
The sum of money used to purchase new capital assets, subtracting the depreciation from current capital assets.
Depreciation
The reduction in the value of an asset over time, due in particular to wear and tear.
Expenditures Approach
A method of calculating GDP that totals consumption, investment, government spending, and net exports.
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