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Economics, Accounting & Business: Post your doubts here!

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Can anyone explain the Accelerator and multiplier process :)
Sure thing. I'll make it simple for you.
For multiplier, refer to this.
http://www.s-cool.co.uk/a-level/eco...regate-supply/revise-it/the-45-degree-diagram
^^ read the example and defination from here, it'd make it further clear to you.

In case of Accelerator, it is actually a result of Multiplier process in which due to multiplier, when the consumption increases, there is an increase in the demand for the product. To meet this demand, the producers increase their output and to do that, they've to spend on capital goods. This investment further increases the national income. However, there are certain assumptions for accelerator effect. 1) It is assumed that the stock is not maintained and the producers would necessarily undergo a capital expenditure just to meet the required demand. (which is not true, as they've buffer stock)
2) Capital good industry may not be able to increase supply.
3) Firms would have to ensure that increase in demand is persistent and long term, otherwise they would not spend on capital expenditure.

Accelerator formula: change in investment/change in national income
 
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Sure thing. I'll make it simple for you.
For multiplier, refer to this.
http://www.s-cool.co.uk/a-level/eco...regate-supply/revise-it/the-45-degree-diagram
^^ read the example and defination from here, it'd make it further clear to you.

In case of Accelerator, it is actually a result of Multiplier process in which due to multiplier, when the consumption increases, there is an increase in the demand for the product. To meet this demand, the producers increase their output and to do that, they've to spend on capital goods. This investment further increases the national income. However, there are certain assumptions for accelerator effect. 1) It is assumed that the stock is not maintained and the producers would necessarily undergo a capital expenditure just to meet the required demand. (which is not true, as they've buffer stock)
2) Capital good industry may not be able to increase supply.
3) Firms would have to ensure that increase in demand is persistent and long term, otherwise they would not spend on capital expenditure.

Accelerator formula: change in investment/change in national income
tnx alot :)
 
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which type of market is created by insurance companies, investment trusts, and finance houses etc

money market
capital market
exchange market
credit market

answer with reason :)
 
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which of the following banks is an association of international banks?

Foreign Bank
Central BANK
Exchange Bank
Consortium Bank
 
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