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    Principles of Macroeconomics Study Set 11
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    Exam 16: Household and Firm Behavior in the Macroeconomy: a Further Look
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    -Refer to the Above Figure
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-Refer to the Above Figure

Question 60

Question 60

Essay

  -Refer to the above figure. Assume the the investment demand curve is currently at I<sub>3</sub>. Describe what would happen if there was an increase in GDP due to the accelerator effect.
-Refer to the above figure. Assume the the investment demand curve is currently at I3. Describe what would happen if there was an increase in GDP due to the accelerator effect.

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