📕 subnode [[@KGBicheno/gdp investment]] in 📚 node [[gdp-investment]]

GDP Investment

Go back to [[Economics main page]]

Personal investment not part of GDP Business investment is a part of GDP

Gross Privatte Domestic Investment

  • Business investments
  • Residential investments
  • Inventories

Exclude inventories and it's called "Fixed investment"

Business investment swings fast because so few people are involved in making the decisions.

Business confidence goes down -> business investment goes down -> economic activity falls

Businesses hold back on investment until there are low hanging fruit to be had.

📖 stoas
⥱ context