Question Details

When gross investment is greater than depreciation, then the nationʹs capital stock increased



True or False
1) When IBM, an American firm, produces computer chips in another country, this production is
not included in U.S. GDP because the production did not take place in the United States.
2) The circular flow diagram shows that the flow of payments to the factors used to produce goods
and services exceeds the flow of payments for final goods and services.
3) The circular flow diagram shows only the aggregate expenditures measure of GDP.
4) The circular flow shows that aggregate spending is larger than aggregate income because
people save.
5) When gross investment is greater than depreciation, then the nationʹs capital stock increased.




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