An economy experiences a recovery, leading to a 4% increase in consumer demand. In response, a major logistics firm increases its annual planned investment in its delivery fleet by 20% to keep pace with the projected capacity requirements. Which economic concept is best illustrated by this scenario?
The multiplier effect
The accelerator effect
The crowding-out effect
The monetary transmission mechanism
22 exam-style questions on OCR A Level Economics The multiplier and the accelerator. Each one has a worked solution and a mark scheme showing where the marks go.