Economics · Macroeconomics (Business Cycles)
In Kaldor's Non-Linear Trade Cycle Theory, the trade cycle is referred to as a 'self-generating trade cycle' because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It depends on technological innovations that follow a pattern
- 2Government policy creates regular fluctuations
- 3The investment and saving functions shift endogenously due to capital accumulation and income changes✓
- 4External shocks continuously disturb the equilibrium
Correct answer
The investment and saving functions shift endogenously due to capital accumulation and income changes
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