Question

Distinguish between multiplier and accelerator ​

Answer 1

The multiplier refers to the phenomenon whereby a change in an injection of expenditure (either investment, government expenditure or exports) will lead to a proportionately larger change (or multiple change) in the level of national income i.e. the eventual change in national income will be some multiple of the initial change in spending

Answer 2

The Accelerator: The multiplier describes the relationship between investment and income, i.e., the effect of investment on income. The multiplier concept is concerned with original investment as a stimulus to consumption and thereby to income and employment. ... It does not make the investment to grow faster and faster.