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Business investment spending affect aggregate economic growth rates? |
Business investment spending affect aggregate economic growth rates? Aggregate economic growth is nothing other than growth in Gross Nationa Product or GNP. This is the sum total of (consumption+investments+governament spending+net exports). You see in this investments is the second term in the formula. When this is increased the GNP goes up too and hence aggregate econconmic growth rise. It should... That is a pretty broad statement, but business investment spending should generate new jobs and in turn economic growth in the area where the investment is. |
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