acceleration principle definition

acceleration principle

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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