0
What is the difference between the multiplier and the accelerator?
Wiki User
∙ 13y ago
the multiplier principle implies that investment increases output whereas the acceleration principle implies that increases in output will themselves induce increases in investment.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Types of multiplier?
tree multiplier CSA (carry select adder) multiplier shift & add multiplier Higher radix multiplier
Difference between static and dynamic multiplier?
The concept of static multiplier implies that changes in investment causes change in income instantaneously. It means that there is no time lag between the change in investment and the change in income. It implies that the moment a rupee is spent on investment project, society's income increases by a multiple. Let us explain the concept of the dynamic multiplier also known as period and sequence multiplier. The concept of dynamic multiplier recognizes the fact that the overall change in income as a result of the change in investment is not instantaneous. There is a gradual process by which income change as a result of change in investment or other determinants of income. The process of change in income involves a time lag. The multiplier process works through the process of income generation and consumption expenditure. The dynamic multiplier takes into account the dynamic process of the change in income and the change in consumption at different stages due to change in investment. The dynamic multiplier is essentially a stage-by stage computation of the change in income resulting from the change in investment till the full effect of the multiplier is realized
Why does the multiplier differ between countries?
its due to different tax interest and import ratess
Difference between multiplier and accelerator in economics?
The multiplier in economics perspective implies that an initial income puts multiple effect in economy and becomes causes of growth and incomes of others. For example we presume that a person gets income amounting to Rs.1000/- and we also presume that Marginal Propensity to Consumption (MPC) is 3/4. It means that he will spend Rs.750/- (1000 x3/4) and the rest amount he keeps for precautionary measures / investment. His expenditure of Rs.750/- is the income of other person - he also will expend Rs.563/- and it becomes the income of other and he will expend Rs.422/-. In this way it is established that an initial income of Rs.1000/- will put effect at least four or five times on investment in the prevailing economy leading increase in Gross Domestic Product (GDP). On the other end Accelerator implies that when output increases in an economy it also increases / accelerates investment to great extent and briskly.
What happens to the income multiplier if the aggregate supply curve is vertical?
the multiplier is zero.
What is super multiplier?
super multiplier refers to interaction of the multiplier and accelerator.
A theory that the business cycles are caused by the interaction of thee multiplier and the accelerator-is known as?
the "Multiplier Accelerator Theory"
Difference between static multiplier dynamic multiplier?
Type your answer here...
Difference between serial and parallel multiplier?
telidu nana...
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 practical differences between simple multiplier and super multiplier?
The simple multiplier implies that investment is the central determinant of output. The super multiplier combines the multiplier with the accelerator that indicates that investment is not autonomous, but is part of derived demand. Hence, the super multiplier indicates that capacity adjusted output is determined by autonomous demand. Autonomous demand in the case of the super multiplier would correspond to government spending, exports and some elements of consumption (particularly the wealthy whose consumption is not constrained by income). The practical difference is that not only demand determines output in the short run, but also in the long run. The economic system is effectively demand driven and Keynes' Principle of Effective Demand substitutes Say's Law.
What is the difference between a force multiplier and a speed multiplier?
A force multiplier increases the effort force and the mechanical advantage is larger than one (Which means it is easier to move a large load with a small effort). While the speed multiplier does not make the effort easier but makes the load move through a larger distance than the effort. The mechanical advantage of a speed multiplier is usually lower than 1.
What is the difference between factors and coefficient?
The difference between factors and coefficient is very distinct. A factor is a quantity which is multiplied with another to give a particular number as the result. A coefficient on the other hand is a multiplier that measures property.
What is the difference between a clutch and an accelerator?
vehicle wise, a clutch is to help you change gears and the accelerator is to accelerate the vehicle in the preferred direction (forwards/ Backwards). in a car the clutch is normally the foot pedal on the left and the accelerator is on the right. Both of the pedals are on either side of the break.
What is the relationship between the monetary multiplier and reserve ratios?
Money Multiplier is inverse of Reserve Requirement. That is, m = 1/R
What is the difference between DW 5000 accelerator pedal and DW 5000 turbo pedal other than the design?
The DW Accelerator pedal decreases the distance between each stroke making it a necessity when speed and sensitivity is needed. The DW Turbo, however, creates a direct relationship between the foot pedal and mallet, creating large, powerful hits.
Types of multiplier?
tree multiplier CSA (carry select adder) multiplier shift & add multiplier Higher radix multiplier
