The Tendency for Investment to Increase When Aggregate Output Increases

question 40

Multiple Choice

The tendency for investment to increase when aggregate output increases, and decrease when aggregate output decreases is known as the __________effect.

• A) disequilibrium
• B) accelerator
• C) multiplier
• D) cyclical

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Definitions:

Frustration-Regression Principle

A theory suggesting that when an individual is blocked from reaching a goal, they may regress to earlier behaviors to cope with the frustration.

ERG Theory

is a theory in psychology proposed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Herzberg's Two-Factor Theory

A theory that separates workplace factors into Motivation factors, which can improve employee satisfaction, and Hygiene factors, which can cause dissatisfaction if absent but not necessarily improve satisfaction if increased.

Motivators

The factors in Herzberg’s theory that cause real, long-term motivation, usually containing intrinsic motivation factors (examples: interesting and challenging tasks, advancement, achievement, growth).