I'm curious about the accelerator effect. I want to understand how it operates and what mechanisms are involved. Could someone explain how the accelerator effect functions?
6
answers
Giuseppe
Thu Dec 19 2024
It occurs when there is an increase in national income, which is typically measured by GDP.
Carolina
Thu Dec 19 2024
This growth in national income triggers a larger-than-proportionate rise in capital investment spending.
EnchantedMoon
Thu Dec 19 2024
Businesses tend to increase their capital expenditures when the economy is experiencing robust growth.
Michele
Thu Dec 19 2024
The accelerator effect is a phenomenon observed in economics.
CryptoMaven
Thu Dec 19 2024
The reason behind this is that firms see opportunities for expansion and improvement during periods of economic prosperity.