Topics
Accelerator effect
Where planned capital investment is linked positively to the past and expected growth of consumer demand or national income.
The accelerator effect is based on the idea that investment spending creates a positive feedback loop: as investment increases, it creates jobs and income, which in turn leads to increased consumer spending, which in turn leads to further increases in investment. This positive feedback loop can result in a virtuous cycle of economic growth. The accelerator effect is a key concept in Keynesian economics and is often used to explain how economic booms and recessions can occur.
-
What is the basic accelerator process?
Study Notes
-
2.5.3 Economic Booms (Edexcel A-Level Economics Teaching PowerPoint)
Teaching PowerPoints
-
4.2.2.3 Investment and the Accelerator (AQA A Level Economics Teaching Powerpoint)
Teaching PowerPoints
-
4.2.3.1 Economic (Business) Cycles (AQA A Level Economics Teaching Powerpoint)
Teaching PowerPoints
-
Interest rates and business investment - chain of reasoning
Practice Exam Questions
-
Monetary and Fiscal Policies Revision Quiz
Quizzes & Activities
-
Multiplier, Accelerator and Keynesian Economics (Revision Presentation)
Teaching PowerPoints
-
Gross and Net Investment
Topic Videos
-
Explaining the Multiplier and the Accelerator
Topic Videos
-
Investment (Quizlet Activity)
Quizzes & Activities
-
Multiplier and Accelerator Effects (Quizlet Activity)
Quizzes & Activities
-
Understanding the Accelerator Effect
Study Notes
-
The Accelerator Effect
Topic Videos
-
Falling oil prices and disappearing rigs
7th February 2016