Consumption
Multiplier
Accelerator
None of these
Answer is Right!
Answer is Wrong!
The correct answer is A. Consumption.
Consumption is the largest component of GDP, accounting for about 60% of total output. When gross investment becomes zero, consumption will still continue, which will prevent national income from becoming zero.
The multiplier is a measure of the effect of a change in investment on national income. The accelerator is a measure of
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