In a Simple Macroeconomic Model,replacing the Assumption of Exogenous Investment

question 50

Multiple Choice

In a simple macroeconomic model,replacing the assumption of exogenous investment with the accelerator theory of investment ________ the effect on equilibrium GDP of fiscal policy changes,and ________ the effect on equilibrium GDP of changes in autonomous consumption.

• A)increases,increases
• B)increases,dampens
• C)dampens,increases
• D)dampens,dampens

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Definitions:

Better Than Anticipated

Results or outcomes that surpass the expected or forecasted standards.

Desired Situation

The optimal state or condition that a person, group, or organization aims to achieve in the future.

Actual Situation

The real and current state of affairs or conditions, as opposed to theoretical considerations or expectations.

Financial Bottom Line

A reference to the net income, profit, or loss reported at the bottom of a company's income statement.