GDP MIRAGE

GDP MIRAGE - GDP MIRAGE 1. What are intangible investments?...

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GDP MIRAGE 1. What are “intangible investments”? Why are they important both to individual firms and a country’s overall economy? A. Those not included in GDP B. 3 intangible investments a. research and development b. training workforce(human capital) c. product development expenditure C. Important because: enhance long run profit scenario, more output per worker, forward looking, *innovation 2. a. According to economists Carol Corrado and Charles Hulten, how has US business spending on intangible investments and tangible investments changed over the last 25 years? Why? A. Business investments more tangible in 1985, by 1995 equal, 2007 intangible spending slightly higher. B. Spending on intangibles has become increasingly important. C. Why? Hi-tech services, development of software b. The article’s authors state that, “In effect, government statisticians are trying to track a 21 st century bust with 20 th century tools.” Explain this statement. A. GDP might look worst then it is if we don’t include intangible spending
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GDP MIRAGE - GDP MIRAGE 1. What are intangible investments?...

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