Economics · Accelerator Principle in Macroeconomics
The acceleration principle in macroeconomics relates net investment demand (It) to changes in national output (Yt). Which equation correctly represents this relationship?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It = a(Yt - Ct)
- 2It = aYt - Yt-1Yt
- 3It = a(Yt - Yt-1)✓
- 4It = aYt
Correct answer
It = a(Yt - Yt-1)
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