ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase in GDP
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stronger its economy
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technology
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more goods & services
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boosts a country’s exports
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Detailed explanation-1: -Business investment can affect the economy’s short-term and long-term growth. In the short term, an increase in business investment directly increases the current level of gross domestic product (GDP), because physical capital is itself produced and sold.
Detailed explanation-2: -when countries invest in capital goods, they are providing better facilities, resources, and/or materials for the people who perform the labor, which creates a more productive workforce leading to greater economic growth (higher GDP).
Detailed explanation-3: -Capital goods are one of the four leading economic factors. An increase in orders and shipments of capital goods is a sign that businesses expect more demand and that the economy will grow.
Detailed explanation-4: -A. By increasing investment in the capital stock (adding real buildings & equipment), the activities of labor become more productive thus generating more output per worker and raising real GDP.