accelerator principle

economics

Also known as: acceleration principle, consumption accelerator(Show More)

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July 23, 2026

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The acceleration principle is an economic theory stating that a change in income leads to a magnified change in investment. This principle, first described in 1936, suggests that increased income can stimulate greater investment, while decreased income can lead to a more significant reduction in investment.1

In contrast, a particle accelerator is a device that uses electric and magnetic fields to propel charged particles to high speeds and energies. These accelerators are crucial for scientific research, enabling the study of subatomic particles and their interactions. They require a source of charged particles, electric fields for acceleration, magnetic fields for guidance, a vacuum environment, and detection systems.2

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John Maurice Clark
…developed his theory of the acceleration principle—that investment demand can fluctuate severely if consumer demand fluctuations exhaust existing productive capacity. His subsequent study of variations in consumer demand as a source of fluctuations in total demand raised some of the issues later treated by Keynes. A wide-ranging theorist, Clark also…
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…developed his theory of the acceleration principle—that investment demand can fluctuate severely if consumer demand fluctuations exhaust existing productive capacity. His subsequent study of variations in consumer demand as a source of fluctuations in total demand raised some of the issues later treated by Keynes. A wide-ranging theorist, Clark also…
Read More

business cycle
Dynamic analyses of cycles
This relationship, known as the accelerator, implies that an increase in national income will stimulate investment. As with the multiplier, it cannot of itself explain cyclical movements; it merely accounts for a fundamental instability that Keynesians thought they had observed.
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This relationship, known as the accelerator, implies that an increase in national income will stimulate investment. As with the multiplier, it cannot of itself explain cyclical movements; it merely accounts for a fundamental instability that Keynesians thought they had observed.
Read More