new addition to capital stock in an economy is _
Answers
Answer:
investment...............
In simple terms,new addition to the capital stock in an economy is called Investment.
Explanation:
In Economics,the process of capital accumulation or addition in the economy is called Investment.It basically denotes the overall change in capital stock in an economy over a certain period of time.Now,investment can be divided into Gross Investment, which imply addition of all the capital stock in the calculation of total capital stock in the economy and Net Investment,which refers to the calculation of total capital stock of an economy as gross investment level in the economy minus all the depreciated capital assets in the economy that have been used previously.Therefore,gross and net investment have different methods of calculating total capital stock in an economy in a certain period of time.