In the simple accelerator model,if expected output declines,

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In the simple accelerator model, expected output is what drives investment. When expected output declines, the rate of investment falls, which means that net investment becomes negative. This is because firms will not invest in new capital if they expect to produce less in the future, and may even reduce their stock of capital goods. Gross investment, however, is simply the total amount of new investment that occurs in an economy, positive or negative, and may not necessarily become negative in this scenario. The desired stock of capital can also become negative, indicating that firms wish to reduce their capital stock below its current level.

In the Simple Accelerator Model,if Expected Output Declines