economics continued
what is the multiplier effect
explains how an increase in injections leads to an increase in national output that was greater than the original injection
what are injections
government spending, exports and investment
the accelertor principle
explains how an increase in economic growth leads to an increase in investment
what are the differences between the multiplier effect and the accelerator
accelerator is expressed as a percentage, multiplier is expressed as a monetary value, the multipler can be any injection,whereas the accelerator can only be investment
what are the determinants of savings
income levels, interest rates and confidence
what is aggregate supply
total amount of supply within the economy as a whole
why does the SRAS curve slope upwards
there is a greater profit incentive as they increase theri output