If there is a feedback loop (injections national income induced investment national income), this is called

Question

If there is a feedback loop (injections > national income > induced investment > national income), this is called

Quizplus · Accepted Answer

The multiplier-accelerator interaction describes how an initial change in aggregate demand can lead to a larger change in national income through the process of injections leading to more income, which then leads to more investment, further increasing national income. This feedback loop emphasizes the interaction between the multiplier effect (where an initial increase in spending leads to further increases in income and consumption) and the accelerator effect (where an increase in demand leads to increased investment in capital goods).

If There Is a Feedback Loop (Injections > National Income