sugests that the rate of income change will determine the level of investment in the economy, if national income is increasing at an increasing rate, then net investment
1 of 6
when the accelarator effect tends to be high?
when the available supply of funds for investment is high.
2 of 6
how firms react to growing demand
expand production, and make a fuller use of their existing productive capacity, by running down their stocks,
3 of 6
criticism
adjustment costs of installation of capital machinary, time lags
4 of 6
capital output ratio low means? signals the productivity of an economy
that the high volume of outpute will be produced with little capital, if capital ratio output is high then low volumes of output will be produced even with high levels of capital available
5 of 6
rate of growth of GDP equals
savings ratio and capital output ratio
6 of 6
Other cards in this set
Card 2
Front
when the available supply of funds for investment is high.
Back
when the accelarator effect tends to be high?
Card 3
Front
expand production, and make a fuller use of their existing productive capacity, by running down their stocks,
Back
Card 4
Front
adjustment costs of installation of capital machinary, time lags
Back
Card 5
Front
that the high volume of outpute will be produced with little capital, if capital ratio output is high then low volumes of output will be produced even with high levels of capital available
Comments
No comments have yet been made