Am i right answer yes you are right for example in the

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Unformatted text preview: tment” a little differently than the word is being used here. Am I right? ANSWER: Yes, you are right. For example, in the everyday world, someone might say, “I made a good investment last week. I bought stock in the stock market.” The economist, however, is not using the word “investment” in this way. Again, what an economist means when he or she uses the word “investment” is the expenditures made by a business— for example, a business buying a factory, or more robotics, and so on. These quarter figures for consumption, investment, and so on have been annualized. This means that for all practical purposes you can consider these quarter figures to be fairly representative of the relevant annual figures. Think of it this way. Suppose that in the first three months of the year (the first quarter of the year) you spend $400 on consumption goods. If you buy the same amount in the next three quarters, your annual expenditure on consumption goods will be $1,200. So, when we say that the quarter figures have been annualized, w...
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