EX-ANTE INVESTMENT VS EX-POST INVESTMENT

• EX-ANTE INVESTMENT VS EX-POST INVESTMENT
• MACRO ECONOMICS

• MEANING OF EX –ANTE INVESTMENT

1. ALSO KNOWN AS INTENDED OR PLANNED OR VOLUNTARY INVESTMENT:
2. EX-ANTE MEANS PLANNED. THE AMOUNT OF INVESTMENT WHICH FIRMS PLANS TO INVEST AT DIFFERENT LEVEL OF INCOME IN THE ECONOMY
3. WHEN THE ENTREPRENEUR MAKES INVESTMENT ACCORDING TO DEFINITE PLAN IN ORDER TO ACHIEVE A GIVEN OBJECTIVE
4. WHICH IS MADE VOLUNTARY
5. CAUSES OF PLANNED INVESTMENT:-
6. ANTICIPATION OF INCREASE IN DEMAND AND MAKE EX-ANTE INVESTMENT TO MEET THE DEMAND AND MAKE PROFIT
7. MAKING OF INVESTMENT FOR REDUCING THE COST OF PRODUCTION
8. WHEN GOVERNMENT OF THE COUNTRY TO ACHIEVE A SET TARGET OF EMPLOYMENT OR ECONOMIC GROWTH IT IS CALLED VOLUNTARY INVESTMENT

• EX-POST INVESTMENT

1. ALSO KNOWN AS UNINTENED OR UNPLANNED OR INVOLUNTARY
2. EX POST MEANS ACTUAL INVESTMENT. REFERS TO ACTUAL INVESTMENT IN AN ECONOMY
3. THE INVESTMENT IS MADE INVOLUNTARY
4. MANY TIMES ON ACCOUNT OF FALL IN DEMAND,STOCK OF GOODS ACCUMULATE WITH THE ENTREPRENEUR
5. THESE STOCKS ACCUMULATES AGAINST THEIR WILL
6. ACTUAL INVESTMENT MADE BY ENTRPRENEUR IS CALLED EX-POST INVESTMENT

• DIFFERENCE
• PLANNED INVESTMENT IS THE INVESTMENT WHICH IS DESIRED TO BE MADE BY THE FIRMS AND PLANNERS IN THE ECONOMY DURING A PARTICULAR PERIOD IN THE BEGINNING OF THE PERIOD
• IT IS AMOUNT OF PLANNED INVESTMENT GIVEN BY INVESTMENT DEMAND FUNCTION
• EX-POST INVESTMENT IS MEASURED AFTER THE FACT.
• ACTUAL INVESTMENT = PLANNED INVESTMENT PLUS UNPLANNED INVESTMENT