Acceleration Principle: Meaning, and relationship with multiplier

Learning Objectives

• Acceleration Principle:
  • Assumptions
  • Mathematical Derivation
• The relationship between Multiplier and Acceleration

Suggested Readings:

Agarwal, Vinita. (2010). Macroeconomics: Theory and Policy. New Delhi: Pearson India

Shapiro, Edward. (1982). Macroeconomic Analysis. (5th Ed.). Boston: Thomson Learning

Vaish. MC. (2010). Macroeconomic Theory. (14th Ed.). New Delhi: Vikas Publishing House Pvt. Ltd.