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In the figure below, I show two series. The red line (left scale) is nonresidential fixed investment spending – basically, business investment — as a percentage of GDP, from the BEA. The blue line (right scale) is the output gap — the percentage difference between real GDP and the CBO’s estimate of potential real GDP. (via Why Isn’t Investment Higher? - Paul Krugman Blog - NYTimes.com)

In the figure below, I show two series. The red line (left scale) is nonresidential fixed investment spending – basically, business investment — as a percentage of GDP, from the BEA. The blue line (right scale) is the output gap — the percentage difference between real GDP and the CBO’s estimate of potential real GDP. (via Why Isn’t Investment Higher? - Paul Krugman Blog - NYTimes.com)

Tags: business   finance   gdp   economics   investment   paul krugman  
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  1. titocosta posted this
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