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Economics A Level

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Question:

How can the Multiplier and Accelerator Process work Together?

Author: go kys



Answer:

-For the Best: AD will be Expanding --> Firms Investing more, leading to More AD Shifting --> The AD Increasing is Multiplied, making National Income grow More --> Leads to a more 'Accelerated Investment.. -For the Worst: AD will Contract --> Firms Invest Less leading to Less AD --> National Income will Fall resulting in less Accelerator Investment...


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go kys
go kys