Final answer:
Investment refers to providing money or capital to an enterprise with the expectation of making a financial gain. Business investment, which includes purchases of capital goods, plays an important role in the economy by creating jobs.
Step-by-step explanation:
Investment refers to providing money or capital to an enterprise with the expectation of making a financial gain. In the context of GDP calculation, investment does not include purchasing stocks and bonds but rather refers to purchasing new capital goods such as buildings, factories, equipment, and inventories.
Business investment plays a significant role in the economy as it creates jobs. However, it can be volatile and fluctuate based on factors such as technological advancements and business confidence.