Economics Real Vs Nominal Gdp Questions
Investment affects GDP by increasing the level of economic activity and overall production in an economy. When businesses invest in new capital goods, such as machinery, equipment, or infrastructure, it leads to increased productivity and output. This, in turn, contributes to the growth of GDP as it measures the total value of goods and services produced within a country's borders. Investment also stimulates employment opportunities, income generation, and consumer spending, further boosting economic growth and GDP.