Question Details

If depreciation exceeds gross investment, net investment is negative



True or false:
1) Net investment equals gross investment minus depreciation.

2) If depreciation exceeds gross investment, net investment is negative.
3) The expenditure approach to measuring GDP includes firmsʹ spending on wages.
4) Intermediate goods and services are one of the largest components of the expenditure approach
to measuring GDP.

5) To calculate GDP using the expenditure approach, in part it is necessary to add exports and
subtract imports.



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