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:

Direct Materials

Raw materials that are directly involved in the manufacturing of a product and can be directly associated with the product.

Process Cost Summary

A document that aggregates and summarizes the total costs associated with a specific stage of production in process costing.

Materials Costs

The expenses associated with the raw materials used in the manufacturing of products or goods.

Canning Department

A section within a manufacturing process focused on the preservation of food by sealing it in airtight containers.