''Lower capital formation leads to lower rate of GDP growth.” Comment.
 

Dear Student
Capital formation means addition to capital stock like building , equipments etc. These capital is used to produce goods with addition to labour. Thus it is known as capital formation.When capital formation is low it means low capital stock and low production and it will adversely effect GDP or caused lower growth of GDP.

Regards​​​​​​

  • 0
What are you looking for?