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when an increase in investment is due to increase in current level of income and production, it is known as induced investment
The autonomous invesment is generally associated with such factors as the introduction on new techniques or products, the development of new resources or the growth of population and labour force
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What is difference between Autonomous Expenditure and Induced Expenditure?
AUTONOMOUS AND INDUCEDEXPENDITURE :Autonomous expenditure is independent ofchanges in real GDP, whereas induced expenditurevaries as real GDP changes. In general, a change inautonomous expenditure creates a change in realGDP, which in turn creates a change in inducedexpenditure. The induced changes are at the heartof the multiplier effect.Induced expenditure is the sum of the componentsof aggregate expenditure that change withGDP.♦ Autonomous expenditure is the sum of the componentsof aggregate expenditure that do notchange when real GDP changes.
What is induced investment?
Business investment expenditures that depend on income or production (especially national income or gross national product). An increase in national income triggers an increase in induced investment expenditures.
What are the four determinants of aggregate demand?
They are : desired spending, autonomous consumption,induced consumption and desired private consumption.
What is the difference between project economic and financial analysis?
Economic analysis, in contrast to financial analysis, defines the real resource flows induced by an investment rather than the investment's monetary effects. (JP Gittinger 1982 Economic Analysis of Agricultural Projects) Financial analysis thus relates to the performance of a project from the viewpoint of a stakeholder - eg, a farmer or institution, and looks at investment, maintenance and operation costs and cash revenues after taxes, duties etc. Economic analysis defines the impact of the project on the regional or national economy. It does not consider transfers between economic actors, such as taxes, duties etc. It values traded outputs/costs at their economic level (often defined by their world price net of import or export costs). Non-traded outputs/costs (ie, where price is not determined by "the market") can be valued on the basis of "willingness to pay" or shadow price. Both economic and financial analysis should look at the with project situation compared to the without project (and not before and after) - ie, they take account of changes that would have occurred in the absence of the project investment.
What characteristics does a successful induction of labor have?
Once labor is induced and the cervix has dilated, labor usually proceeds normally. When performed properly, induced labor is a safe procedure for both mother and baby.
What is the difference between induced and autonomous investment?
Note that 'autonomous' means something you cant do wihtout.this kind of involves does not respond too changes in nocome level because it comes from a point of necessity e.g building of roads,govt hospitals,school etc.while induced investment responds to changes in income levels,,entreprenuers would prefer to invest more when there is abundance in availability of finance an vice versa.
What is difference between Autonomous Expenditure and Induced Expenditure?
AUTONOMOUS AND INDUCEDEXPENDITURE :Autonomous expenditure is independent ofchanges in real GDP, whereas induced expenditurevaries as real GDP changes. In general, a change inautonomous expenditure creates a change in realGDP, which in turn creates a change in inducedexpenditure. The induced changes are at the heartof the multiplier effect.Induced expenditure is the sum of the componentsof aggregate expenditure that change withGDP.♦ Autonomous expenditure is the sum of the componentsof aggregate expenditure that do notchange when real GDP changes.
What is induced investment?
Business investment expenditures that depend on income or production (especially national income or gross national product). An increase in national income triggers an increase in induced investment expenditures.
Interaction of multiplier and accelerator is called?
The interaction of multiplier and accelerator which bring change in gross national income. The components of theory are warranted growth rate, consumption function, autonomous investment, induced investment and multiplier accelerator relationship. The economy is growing at warranted growth rate when saving and investment are equal. The economic fluctuations around the warranted growth rate are due to working of multiplier and accelerator. The consumption is considered the function of income of the previous period. When consumption lags behind income, the multiplier is treated as lagged relation. Autonomous investment is free from changes in output level so it is not concerned with growth of economy. Induced investment has a link with changes in output so it is related with economic growth rate. The accelerator is based on induced investment. When investment level falls, the accelerator-multiplier works on the reverse direction. The price of contraction is slow as compared to expansion due to asymmetrical working accelerator. During expansion phase the limit to the expansion of real investment is set by production system capacity. In case of downturn the limit to disinvestment is set by depreciation. The businessman does not replace the worn-out machines. During slump multiplier work in reverse order and accelerator has limited role. Autonomous investment declines during slump but remains positive. The cyclical process is repeated in this way.
What are the four determinants of aggregate demand?
They are : desired spending, autonomous consumption,induced consumption and desired private consumption.
Induced angle of attack in simple terms?
it is the difference between local flow direction and free stream direction of atmospheric air
What happens when metal rod moves in magnetic field?
Induced voltage generates in rod.Voltage difference evolve between two ends.
What is difference between induced voltage and induced current?
Just as a current flowing through a wire will produce a magnetic field, so a wire moving through a magnetic field will have a current flowing through it. This is called electromagnetic induction and the current in the wire is called induced current. A stationary wire in the presence of a changing magnetic field also has an induced current. A changing magnetic field can be produced either by moving a magnet near to the stationary wire or by using alternating current. A stationary wire in a magnetic field which is not changing will have no current induced in it. You will sometimes see this effect described as induced voltage. Strictly speaking, you will only get an induced current in the wire if it is part of a complete circuit. A wire which is unconnected at both ends will have a difference in voltage between the ends (a potential difference) but current can only flow when the wire is in a circuit. Induced current is used in electricity generation and transformers.Another AnswerThere is no such thing as an 'induced current', only an 'induced voltage'. Current will flow only if the conductor into which the voltage is induced forms part of a closed circuit.
In colomn answer of difference between statically indused emf and dynamicaly indused emf?
Statically induced emf is produced by the relative motion between a conductor and a magnetic field, while dynamically induced emf is generated due to a change in the magnetic field strength experienced by a conductor. Statically induced emf does not require any physical movement of the conductor, while dynamically induced emf is produced when the magnetic field changes over time.
Difference between back EMF and induced EMF?
An induced electromotive force (emf) is an induced voltage. Voltage (emf) causes current flow, and this induced voltage will cause a current that is called the induced current.We might also add that the induced current will cause a magnetic field to expand about the current path, and this field will "sweep" the conductor. The sweeping of the conductor by that expanding magnetic field will set up an emf that will oppose the emf that was creating it.CommentTechnically, there is no such thing as an 'induced current'. It is voltage that is induced. Any current flows as a result of that induced voltage being applied to a load. But that current is certainly NOT induced!
In a two coil system the induced potential difference in the secondary coil depends on?
In a two-coil system, the induced potential difference in the secondary coil depends on several factors: the rate of change of magnetic flux through the coil, the number of turns in the secondary coil, and the strength of the magnetic field produced by the primary coil. According to Faraday's law of electromagnetic induction, the induced voltage is proportional to the rate of change of the magnetic field and the coil's turns. Additionally, the orientation and distance between the coils can also affect the induced potential difference.
Difference between statically and dynamically induced emf?
STATICALLY INDUCED EMFThe emf induced in a coil due to change of flux linked with it (change of flux is by the increase or decrease in current) is called statically induced emf.Transformer is an example of statically induced emf. Here the windings are stationary,magnetic field is moving around the conductor and produces the emf.DYNAMICALLY INDUCED EMFThe emf induced in a coil due to relative motion of the conductor and the magnetic field is called dynamically induced emf.example:dc generator works on the principle of dynamically induced emf in the conductors which are housed in a revolving armature lying within magnetic field
