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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is the Accelerator Process [Effect] -Where would it be seen?

Author: eric_galvao



Answer:

-This is when Firms makes 'Accelerated Investments' in Capital Goods [Machinery and Factories] to Increase Output and make Future Profit -Can be seen when going through a Recovery or at the Start of a Boom - Times when Demand will Increase Fast and Firms need to Produce More, hence the Investment


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