2007-12-11 12:15:06 · 4 answers · asked by bowl114 1 in Social Science ➔ Economics
investment
2007-12-11 12:19:22 · answer #1 · answered by meg 7 · 1⤊ 0⤋
True. Investment is a component of GDP. Ensure economic growth means that the country GDP have to increase constantly over the long period. So, to ensure economic growth the components of the GDP must increase (not only investment!). Why so necessary the investment component? Because this let the country to be available of produce more overtime and this bring more income to the people on the country, conclusion-->economic growth. Let see it by other point of view. Imagine all other components can increase except investment, imagine consume. How could be more consume of goods if the industries cant produce more (they have to invest to produce more)? If investment don't change,what you have to consume is imports but this reduces the GDP so the growth of GDP will be 0 (GDP=...+Consume-Imports=0)
2016-05-23 03:32:04 · answer #2 · answered by marget 3 · 0⤊ 0⤋
savings and investment
2007-12-11 17:19:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
demand
2007-12-12 09:40:04 · answer #4 · answered by hein 6 · 0⤊ 0⤋