Refer to Figure 16.3.A shift from AS2 to AS3 could be caused by
Definitions:
Capital Stock
The total amount of physical and financial assets owned by a company or country, including buildings, machinery, and equity investments.
Net Investment
The amount of investment in new capital (such as equipment, buildings, and inventory) minus depreciation of existing capital.
Depreciation
A reduction in the value of an asset over time, due to wear and tear, age, or obsolescence.
Net Investment
The total spending on new capital assets minus the depreciation on existing assets, indicating the growth in a company’s or economy's capital stock.
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