If Depreciation (Consumption of Fixed Capital) Exceeds Gross Domestic Investment

question 37

Multiple Choice

If depreciation (consumption of fixed capital) exceeds gross domestic investment, we can conclude that

• A)nominal GDP is rising but real GDP is declining.
• B)net investment is negative.
• C)the economy is importing more than it exports.
• D)the economy's production capacity is expanding.

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Definitions:

Absenteeism

The habitual non-presence of an employee at their job, which can be voluntary or involuntary, and often affects productivity.

Alienation

The feeling of being isolated and disconnected from one’s work, society, or sense of self.

Vertical Loading

A management concept involving the process of delegating more responsibilities and higher-level tasks to employees to increase their involvement and motivation.

Performance Accountability

Involves holding employees or organizations responsible for achieving performance objectives and standards.