The Difference Between Gross Investment and Net Investment Is the Stock

question 48

True/False

The difference between gross investment and net investment is the stock of inventory.

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Definitions:

Multiplier

In economics, a factor by which an initial change in spending will alter total economic output due to follow-on effects.

Inflationary Gap

A situation where the total demand in an economy exceeds the total supply at the current price level, often leading to inflation.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand, indicating a balance in an economy's output and expenditures.

Full Employment GDP

The total market value of all final goods and services that could be produced in a year at full employment.