Answer: magnifies spending-income changes into greater changes in aggregate demand, causing demand-pull inflation
Explanation:
The spending multiplier is the ratio of the change in GDP to the change in the autonomous expenditure.
The spending income multiplier magnifies spending-income changes into greater changes in aggregate demand, causing demand-pull inflation. In a situation whereby there's a reduction in the investment spending, there'll be a recession.
Answer:
Design competition
Explanation:
Competition is said to occur when there is rivalry between business organisations that offers the same product and services. This results in struggle for profit, market share growth as well as revenue achievement.
Design competition is employed by the organization who wants to have a cutting edge advantage over rival companies that produces the same product. This dine by changing production line, technology, product size and quality e.t.c.
However, various barriers hinders Design competition. For instance, large investment in old technology will make decisions to take up new technology a hard one to take.
