Gross Domestic Capital Formation can be calculated as:
Gross Domestic Capital Formation can be calculated as:
(a) Gross Fixed Capital Formation + Inventory Investment
(b) Gross Business Fixed Investment + Gross Residential Construction Investment + Gross Public Investment + Inventory Investment
(c) Net Capital Formation + Consumption of Fixed Capital
(d) All of these
Anurag Pathak Changed status to publish December 13, 2023
Ans – (d)
Explanation:-
Gross Domestic Capital Formation is the addition to the present stock of capital during the year.
This investment can be in fixed capital and inventory.
Thus it is calculated with the following formulas:
Gross Domestic Capital Formation =
(i) Gross Fixed Capital Formation + Inventory Investment
(ii) Gross Business Fixed Investment + Gross Residential Construction Investment + Gross Public Investment + Inventory Investment
(iii) Net Capital Formation + Consumption of Fixed Capital
Anurag Pathak Changed status to publish December 13, 2023
