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.

Related Videos




http://www.businessdictionary.com/definition/acceleration-principle.html

Today's Top Bulls

73% Bullish
(95 Votes)
71% Bullish
(51 Votes)
70% Bullish
(70 Votes)
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z