Economics
The Multiplier-Accelerator Model of Business Cycle Fluctuations
Quick fact
Paul Samuelson, the first American Nobel laureate in economics, formalized this model in 1939, showing how the interaction of the multiplier and accelerator alone—without any external shocks—could produce alternating booms and busts.
Why this is interesting
Have you ever wondered why economies don't grow smoothly but instead lurch between booms and busts? What if a single new factory could set off a chain reaction that eventually triggers a recession?