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In the context of business cycles, what does the "accelerator" concept refer to?
  • a)
    The role of government in controlling inflation.
  • b)
    The role of innovations in driving economic fluctuations.
  • c)
    The relationship between investment and consumer demand.
  • d)
    The process of increasing interest rates to curb inflation.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
In the context of business cycles, what does the "accelerator&quo...
In the context of business cycles, the "accelerator" concept refers to the relationship between investment and consumer demand. When consumer demand increases, it stimulates investment in capital goods industries to meet the rising demand. This interaction between consumer demand and investment leads to cyclical fluctuations in economic activities.
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In the context of business cycles, what does the "accelerator" concept refer to?a)The role of government in controlling inflation.b)The role of innovations in driving economic fluctuations.c)The relationship between investment and consumer demand.d)The process of increasing interest rates to curb inflation.Correct answer is option 'C'. Can you explain this answer?
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In the context of business cycles, what does the "accelerator" concept refer to?a)The role of government in controlling inflation.b)The role of innovations in driving economic fluctuations.c)The relationship between investment and consumer demand.d)The process of increasing interest rates to curb inflation.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about In the context of business cycles, what does the "accelerator" concept refer to?a)The role of government in controlling inflation.b)The role of innovations in driving economic fluctuations.c)The relationship between investment and consumer demand.d)The process of increasing interest rates to curb inflation.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the context of business cycles, what does the "accelerator" concept refer to?a)The role of government in controlling inflation.b)The role of innovations in driving economic fluctuations.c)The relationship between investment and consumer demand.d)The process of increasing interest rates to curb inflation.Correct answer is option 'C'. Can you explain this answer?.
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