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- Q424460 subject Q6940442.
- Q424460 subject Q8330167.
- Q424460 abstract "The accelerator effect in economics refers to a positive effect on private fixed investment of the growth of the market economy (measured e.g. by a change in Gross National Product). Rising GNP (an economic boom or prosperity) implies that businesses in general see rising profits, increased sales and cash flow, and greater use of existing capacity. This usually implies that profit expectations and business confidence rise, encouraging businesses to build more factories and other buildings and to install more machinery. (This expenditure is called fixed investment.) This may lead to further growth of the economy through the stimulation of consumer incomes and purchases, i.e., via the multiplier effect.The accelerator effect also goes the other way: falling GNP (a recession) hurts business profits, sales, cash flow, use of capacity and expectations. This in turn discourages fixed investment, worsening a recession by the multiplier effect.The accelerator effect fits the behavior of an economy best when either the economy is moving away from full employment or when it is already below that level of production. This is because high levels of aggregate demand hit against the limits set by the existing labour force, the existing stock of capital goods, the availability of natural resources, and the technical ability of an economy to convert inputs into products.".
- Q424460 wikiPageWikiLink Q1053266.
- Q424460 wikiPageWikiLink Q1113011.
- Q424460 wikiPageWikiLink Q1671781.
- Q424460 wikiPageWikiLink Q176494.
- Q424460 wikiPageWikiLink Q1801078.
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- Q424460 wikiPageWikiLink Q1879079.
- Q424460 wikiPageWikiLink Q18907327.
- Q424460 wikiPageWikiLink Q192311.
- Q424460 wikiPageWikiLink Q20078795.
- Q424460 wikiPageWikiLink Q2112141.
- Q424460 wikiPageWikiLink Q256745.
- Q424460 wikiPageWikiLink Q2714114.
- Q424460 wikiPageWikiLink Q285982.
- Q424460 wikiPageWikiLink Q384136.
- Q424460 wikiPageWikiLink Q476300.
- Q424460 wikiPageWikiLink Q524004.
- Q424460 wikiPageWikiLink Q5449686.
- Q424460 wikiPageWikiLink Q5456372.
- Q424460 wikiPageWikiLink Q572079.
- Q424460 wikiPageWikiLink Q6940442.
- Q424460 wikiPageWikiLink Q6998479.
- Q424460 wikiPageWikiLink Q823288.
- Q424460 wikiPageWikiLink Q8330167.
- Q424460 comment "The accelerator effect in economics refers to a positive effect on private fixed investment of the growth of the market economy (measured e.g. by a change in Gross National Product). Rising GNP (an economic boom or prosperity) implies that businesses in general see rising profits, increased sales and cash flow, and greater use of existing capacity.".
- Q424460 label "Accelerator effect".