Correlation between savings and capital formation

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Reference no: EM1311500

1. What is the relationship between savings, capital formation, and consumption.

2. GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.

3. Explain why the value of intermediate goods produced and sold during the year are not included separately as part of GDP, but intermediate goods produced and not sold are included separately as part of GDP.

Reference no: EM1311500

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