Gross Domestic Capital Formation is equal to:
Gross Domestic Capital Formation is equal to:
(a) Gross Investment
(b) Gross Domestic Fixed Capital Formation + Change in Stock
(c) Net Domestic Fixed Capital Formation + Inventory Investment + Depreciation
(d) All of the above
Anurag Pathak Changed status to publish December 14, 2023
Ans – (d)
Explanation:-
Gross Domestic Capital Formation is the addition to the current stock of capital during a year. It includes investment in fixed assets and inventory without considering depreciation.
Thus, it can be represented with the following formulas:
Gross Domestic Capital Formation = Gross Investment
Gross Domestic Capital Formation = Gross Domestic Fixed Capital Formation + Change in stock
Gross Domestic Capital Formation = Net Domestic Fixed capital Formation + Inventory Investment + Depreciation
Anurag Pathak Changed status to publish December 14, 2023
