economics medium Fill in the Blank

In national income accounting, GFCF stands for Gross Fixed ___ Formation, which is a key measure of investment in an economy.

  1. Green
  2. 2011-12
  3. Capital
  4. Current

Answer: Capital

GFCF represents the net increase in physical assets (like machinery, buildings, and infrastructure) within the economy during a specific period, minus depreciation. It is a crucial component of GDP and a primary indicator of a nation's investment climate and future productive capacity.

Topic Macroeconomics - Growth
Exam Relevance UPSC Prelims, SSC CGL
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