Question

What happens to total output when it is divided between consumption and investment in a given year?

विकल्प

• Total output is excluded from both consumption and investment.

• Total output is used only for investment.

• Total output is divided between consumption and investment.

• Total output is used only for consumption.

Answer 1

In a given year, total output is divided between consumption and investment. The allocation determines how much is available for present use and future productive capacity.