Extract E (lines 8–11) states: ‘Following a prolonged period of stagnation, a sharp rise in consumer confidence has led to an unexpected surge in demand for durable goods. With factory capacity utilization now exceeding 92%, firms are rushing to install new production lines. Under the accelerator theory, this change in national income is set to catalyze a major cycle of private sector investment.’

Explain how the accelerator process is likely to affect economic growth.