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Hicks by Deeksha Kapoor is a document available to read on EtoBox.
Hicks put forth a theory of business cycles based on the interaction between the multiplier and accelerator. The equilibrium growth path is determined by autonomous investment and the combined effect of the multiplier and accelerator. External shocks can push the economy above the equilibrium path, causing rapid expansion through multiplier and accelerator effects until the full employment ceiling is reached. Then a contraction phase begins as induced investment declines sharply, moving the economy back dow
- Author
- Deeksha Kapoor
- Language
- EN