Using the data in the link below, what is the amount of capital depreciation experienced by the hypothetical economy? http://postimage.org/image/uxa0gr3cf/ Question 5.
The amount of capital depreciation that is experienced by the economy in this table is C$9 billion.
The way that we can find this is by using the figures that are given in the table for gross investment and net investment. All we have to do is to subtract the net investment figure from the figure for gross investment. When we have done that, we have the figure for depreciation.
In other words:
Gross investment – net investment = depreciation.
Since gross investment in this case is C$35 billion and net investment is C$26 billion, the capital depreciation is C$9 billion.
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