Business Cycles Vs. Acceleration Effect
As the acceleration effect dictates that the increase of income accelerates capital accumulation, and the decrease of income accelerates capital depletion (in a simple model), this might cause the system to become unstable or cyclical, and hence many kinds of business cycle models are of this kind (the multiplier-accelerator cycle models).
Read more about this topic: Accelerator Effect
Famous quotes containing the words business, cycles and/or effect:
“Your business is not to catch men with show,
With homage to the perishable clay,
But lift them over it, ignore it all,
Make them forget there’s such a thing as flesh.
Your business is to paint the souls of men—”
—Robert Browning (1812–1889)
“The stars which shone over Babylon and the stable in Bethlehem still shine as brightly over the Empire State Building and your front yard today. They perform their cycles with the same mathematical precision, and they will continue to affect each thing on earth, including man, as long as the earth exists.”
—Linda Goodman (b. 1929)
“Human knowledge and human power meet in one; for where the cause is not known the effect cannot be produced. Nature to be commanded must be obeyed; and that which in contemplation is as the cause is in operation as the rule.”
—Francis Bacon (1560–1626)