If Investments increases, Savings increases since I = S
If Consumers save more, Consumption decreases Capital affects TFP in endogenous model When a capital is given to a country, the workers are able to utilize the capita l efficiently The skillsets of a worker has therefore increased, thus, A increases (TFP) GDP = the monetary value of all final goods and services currently produced in o ur economy in a given year If a person purchases a services that will only be available in the future (Such as concert tickets), at what point in time will the GDP be added? During the pu rchase of the tickets where no goods and services are not produced yet or only w hen the service is delivered?