GDP Investment

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Personal investment not part of GDP Business investment is a part of GDP

Gross Privatte Domestic Investment

• Business investments
• Residential investments
• Inventories

Exclude inventories and it’s called "Fixed investment"

Business investment swings fast because so few people are involved in making the decisions.

Business confidence goes down -> business investment goes down -> economic activity falls

Businesses hold back on investment until there are low hanging fruit to be had.