Economics · Macroeconomics (Business Cycles)
In Samuelson's model, if α (MPC) = 0.5 and β (accelerator) = 0, the behaviour of income follows:
- 1Fluctuations of constant amplitude
- 2Cycle-less path (non-oscillatory convergence to new equilibrium)✓
- 3Damped oscillations
- 4Explosive oscillations
Correct answer
Cycle-less path (non-oscillatory convergence to new equilibrium)
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