Both the Multiplier Effect and the Investment Accelerator Tend to Make

question 135

True/False

Both the multiplier effect and the investment accelerator tend to make the aggregate-demand curve shift further than it does due to an initial increase in government expenditures.

---

Definitions:

Annual Harvest

The process or period of gathering crops or yields from plants each year, often relating to agriculture.

Softwoods

Wood from gymnosperm trees such as pines and spruces, which is generally lighter and less dense than hardwood and often used in construction and manufacturing.

Global Demand

The total demand for goods and services in the global market, influenced by various factors including population and economic conditions.

Plant Fibres

Natural or botanical fibers derived from plants, used in making textiles, paper, and other products.