Question

compare and contrast multiplier and accelerator in economics

Answer 1

Answer:

Multiplier shows the effect of a change in investment on income and employment, whereas accelerator shows the efforts of a change in consumption on investment. In other words, in the case of multiplier, consumption is dependent upon investment, whereas in the case of accelerator investment is dependent upon consumption.

Explanation:

This is the answer.

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Answer 2

Answer:

Explanation:

Multiplier shows the effect of a change in investment on income and employment whereas accelerator shows the effects of a change in consumption on investment. In other words, in the case of multiplier, consumption is dependent upon investment, whereas in the case of accelerator investment is dependent upon consumption.