Question

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QUESTION BELOW

Q. WHAT IS GROSS AND NET INVESTMENT ???​

Answer 1

Explanation:

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Answer 2

Gross investment:Overall investment level added to the capital stock of an economy including the depreciated and operational capital

Net Investment:Overall addition to capital stock of an economy less the depreciated capital.

Explanation:

In Economics,gross investment level includes the overall or total addition made to the existing capital stock of an economy.This overall capital addition includes all the capital equipment,machinery and physical assets in the economy which are both functional and depreciated.Hence,the depreciated assets are also added in the calculation of gross investment.

On the other hand,net investment is calculated by deducting the depreciated capital stock from the overall addition of capital stock in the economy or the gross investment.