Question

Gross fixed capital formation vs net fixed capital formation

Answer 1

Answer:

Definition: Gross fixed capital formation is essentially net investment. It is a component of the Expenditure method of calculating GDP. To be more precise Gross fixed capital formation measures the net increase in fixed capital.

Explanation:

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Answer 2

Answer:

Gross fixed capital formation is essentially net investment. It is a component of the Expenditure method of calculating GDP. To be more precise Gross fixed capital formation measures the net increase in fixed capital.

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