Which one of the following combinations is most likely to induce a strong accelerator effect on investment in an economy?
| Rate of change of aggregate demand | Level of spare capacity in the economy | Availability of credit for businesses | |
|---|---|---|---|
| A | Falling | High | Low |
| B | Rising | High | High |
| C | Falling | Low | Low |
| D | Rising | Low | High |
A
B
C
D
222 exam-style questions on AQA A Level Economics 2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts, covering 2.2.1 The circular flow of income, 2.2.2 Aggregate demand and aggregate supply analysis, 2.2.3 The determinants of aggregate demand, 2.2.4 Aggregate demand and the level of economic activity, 2.2.5 Determinants of short-run aggregate supply, and 2.2.6 Determinants of long-run aggregate supply. Each one has a worked solution and a mark scheme showing where the marks go.