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:

Ability to See

A physiological function that allows organisms to interpret electromagnetic wavelengths from the environment, commonly known as vision.

Humans

Intelligent, bipedal species known for advanced communication, social structures, and ability to create and manipulate the environment.

Retinal System

The part of the eye responsible for converting light into neural signals, allowing for the perception of visual images.

Cone Vision

The visual perception enabled by cone cells in the retina of the eye, allowing for color vision and detailed vision in bright light conditions.