The accelerator theory states that business cycle fluctuations are explained by fluctuations in:
A) investment
B) income
C) the multiplier
D) exports and imports
Correct Answer:
Verified
Q13: The tendency for investment to increase when
Q14: A positive output gap is more likely
Q15: If the MPW is 0.4, the MPC
Q16: An inflationary gap occurs when:
A) when prices
Q17: A man is sacked from his job
Q19: An output gap where equilibrium GDP is
Q20: A woman who retired becomes bored with
Q21: The largest component of aggregate demand in
Q22: The increase in unemployment that occurs during
Q23: The net export component of aggregate demand
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