Ayushi Asked a Question
August 13, 2020 12:37 pmpts 30 pts
70. Which is the following in not true about the fixcd accelerator modcl? (1) The capital-output ratio is assumed to be constant (2) Complete absence of excess capacity is assumed (3) The lagged capital-output relations in this case is given as I, =® (Y1-Y,-2) (4) The capital goods industries have surplus capacity (31 -3AICA T H I = B (Y- - Y-2) 71. With different values of a (propensity to consume) and p faccelerator coeficient), Samuelson in his theory of business cycles claimed that there will be explosive 71. cycles for the following values of a and B (1) a = 0.5 and B = 0 (2) a = 0.6 and ß =2 (3) a = 0 5 and ß =1 (4) a = 0 8 and B = 4
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  • Anonymous User Best Answer
    please like and thanks my comments if u like them
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  • Anonymous User thankyou
    Dear 4th option is not correc The capital goods industries have surplus capacity
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  • Anonymous User
    Dear 4th option is not correc The capital goods industries have surplus capacity
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  • Ayushi
    what is the answer of question 71 ?
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