Question

What are possible reasons Real Gross Private Domestic Investments go up prior to a recession, and then go down during the recession?

Answer 1

Before recession economy will be in inflation situation where price level is the high due shortage of the supply of the goods in order to meet the demand in the economy business people invest more on such period for higher profit.

once the purposer face achieved by the economy next phase recession will start due to falling in the price and lower profits and the shortage of the aggregate demand in the economy the Real Gross Private Domestic Investment go down.