Q.Write about Super Multiplier.

The super multiplier is the joint effect of the multiplier and the accelerator, giving a larger total change in income than either alone.

• Background: the multiplier shows how a change in investment causes a magnified change in income (through induced consumption). The accelerator shows how a change in consumption/income induces a further change in investment.
• Interaction: when the two work together, an initial rise in autonomous investment raises income (multiplier); the higher income induces more investment (accelerator); this induced investment again raises income through the multiplier, and so on. This continuous interaction is the super multiplier or leverage effect, a concept developed by J.R. Hicks. …

The multiplier measures the effect of a change in investment on income, while the accelerator measures the effect of a change in income/consumption on investment — they work in opposite directions.

• The multiplier explains how an initial injection of investment raises income by a multiple amount through successive rounds of spending.
• The accelerator explains how a rise in demand for consumer goods induces firms to invest more in capital goods, and the induced investment is a multiple of the change in demand. …