acceleration principle
Definition
Concept in economics that explains the link between output and capital investment. It states that an increase or decrease in the demand for consumer goods will cause a greater increase or decrease in the demand for machines required to make those goods. In other words, there is a direct relationship between the rate of output of an economy and the level of investment in capital goods. Also called accelerator principle.
acceleration principle is in the Accounting & Auditing, Economics, Politics, & Society and Investing subjects.
acceleration principle appears in the definition of the following term: accelerator principle
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