What is the difference between exante investment and ex post investment?
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What is the difference between exante investment and ex post investment?
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Planned investment (Ex-ante) is the investment that enterprises and planners in the economy wish to make at the start of a period. Ex-post or real investment, on the other hand, is the actual investment of a period (e.g., a year) measured after the fact. It's worth noting that Keynes' theory includes stocks of unsold commodities, which he referred to as "unplanned investment." As a result, actual investment is equal to the sum of planned and unanticipated investments. In a nutshell, planned investment is defined as intended (imaginary) or desired investment, whereas actual investment is defined as planned + unplanned investment. It's important to remember that sometimes investments are made that weren't originally planned. Unplanned investment is the term for this type of investment. When unsold completed goods amass due to poor sales, unplanned investment occurs. As a result, an economy's actual investment is the sum of planned and unanticipated investment. Ex ante investment is made based on future expectations, whereas Ex post investment is made based on the actual outcome of variables.
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