Not the multiplier effect

[didds]

I recall from my O-Level (1979) and A-level (1981) Economics the multiplier effect

But there is another effect called something like "arithmetical" effect (but googling that doesn't give me any hits so the name isn't correct) that I cant recall the name of.

DAK?

[dealtn]

I recall from my O-Level (1979) and A-level (1981) Economics the multiplier effect

But there is another effect called something like "arithmetical" effect (but googling that doesn't give me any hits so the name isn't correct) that I cant recall the name of.

DAK?

Can you describe the effect then to assist?

[didds]

that's why i wanted to google it

[Boots]

Are you thinking of the difference between arithmetical average and geometric average?

I'm no mathematician, but my simplistic knowledge is geometric average is sometimes also called Compound Annual Growth Rate (CAGR). At a simplistic level it tries to explain why, if you lose 30% in year 1, then make 50% in year 2, then lose 20% in year 3 you are not back where you started.

Not sure that helped!

[didds]

Are you thinking of the difference between arithmetical average and geometric average?

no. There is an economic effect called the multiplier effect

https://www.investopedia.com/terms/m/mu ... effect.asp


eg I get a pay rise of ten quid a week. I save £2 a week. I sopend an additional £8 a week.

that £8 a week is earned by somebody. They save £2 a week and spend £6 a week.

That is earned by somebody who save £2a, abd spends £4 etc etc

So £10 extra for one person become multiple times that across the economy as a whole (Ive left taxation out of this for ease, but the exchequer also benefits in reality by tax on each set of trcikle down earnings)

There is I recall another effect which name I cant recall hence my question - but there is an analogy with arithmetic and geometric progressions in maths

[dealtn]

that's why i wanted to google it

Not sure that helps then!

Income Effect?
Substitution Effect?
Wealth Effect?
Marginal propensity to ... effect?

[didds]

sadly none of them... when I see it I'll know it as it were!

[GrahamPlatt]

Trickle down? Or, at £2 a week, should that be drip down?

[CryptoPlankton]

Accelerator Effect?

[monabri]

Downward?

Negative multiplier effect?

Deprecating?

[Breelander]

I recall from my O-Level (1979) and A-level (1981) Economics the multiplier effect
But there is another effect ... that I cant recall the name of.

There is an economic effect called the multiplier effect

https://www.investopedia.com/terms/m/mu ... effect.asp

The 'Crowding-Out effect' ?

What Is the Crowding-Out Effect?
In theory, the crowding-out effect is a competing force for the multiplier effect.....

https://www.investopedia.com/ask/answer ... imulus.asp

[didds]

nope.

Its definitely a single word (and "effect") akin to "arithmetical".

[servodude]

nope.

Its definitely a single word (and "effect") akin to "arithmetical".

Anything in the list of economic "effects" here:https://en.m.wikipedia.org/wiki/Category:Economics_effects

[CryptoPlankton]

nope.

Its definitely a single word (and "effect") akin to "arithmetical".

Please look again at "Accelerator Effect", it is often discussed in conjunction with the Multiplier Effect.

e.g. "Multiplier shows the effect of a change in investment on income and employment whereas accelerator shows the effects of a change in consumption on investment."

[didds]

Please look again at "Accelerator Effect", it is often discussed in conjunction with the Multiplier Effect.

e.g. "Multiplier shows the effect of a change in investment on income and employment whereas accelerator shows the effects of a change in consumption on investment."

That's it!!! Sorry CP - I missed your previous post. Funny how the brain works - I got the beginning with an A thing but the rest was horribly wrong!

Oh well, it was 41 years ago - and I only got a B at A-level! LOL


many MANY thanks.

didds