Ayushi Asked a Question
August 24, 2020 2:29 pmpts 30 pts
71. With dilferent values of a (propensity to consume) and p (accelerator coefficient), Samuelson in his theory of business cycles clafmed that there will be explosive cycles for the following values of a and B (1) a= 0 5 and B = 0 (2) a = 0.6 and B =2 (3) a = 0-5 and B =1 (4) a = O 8 and B =4
  • 1 Answer(s)
  • 0 Likes
  • 1 Comments
  • Shares
  • Nidhi taparia Best Answer
    Option (2) is right. Samuelson used various combinations of values of marginal propensity to consume and accelerator. One of these was when mpc = 0.6 and accelerator = 2. This pro...
    Show more
    Likes(0) Reply(0)