Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

The diagram shows how a rise in the growth rate of national income can bring about a further rise in national income. What should be added to the diagram at points 1, 2 and 3?

  • A1: the accelerator; 2: induced investment; 3: the accelerator
  • B1: the accelerator; 2: induced investment; 3: the multiplier
  • C1: the multiplier; 2: autonomous investment; 3: the accelerator
  • D1: the multiplier; 2: autonomous investment; 3: the multiplier

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI