According to the Accelerator Effect, There Is a Tendency for Investment

question 287

True/False

According to the accelerator effect, there is a tendency for investment to decrease when aggregate output decreases, thus accelerating the decline of output.

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Definitions:

Explicit Commitment

Explicit commitment involves a clear and unequivocal promise or declaration to perform a particular action or adhere to a certain path.

Contemplation Stage

A phase in the Transtheoretical Model of behavior change where individuals are aware they have a problem and are thinking about overcoming it but have not yet made a commitment to take action.

Awareness Problem

A situation in which individuals or groups are unaware of important information, issues, or problems, often leading to misunderstanding or lack of action.

Precontemplation Stage

The initial stage of the Transtheoretical Model of change, where the individual is not yet actively thinking about changing a specific behavior.