Gross investment is the amount spent on replacing the depreciated capital and on net additions to the capital stock.Investment is the purchase of capital goods - plant and equipment, residential structures, and changes in inventory - that can be used in the production of other goods and services.You purchase a house at auction.Business firms will adjust their production until unplanned investment (or inventory investment) isIf unplanned investment is positive (Iu>0), firms will reduce output.
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