Economic Literacy: 'Acceleration Principle'

An economic concept that draws a connection between output and capital investment.

According to the acceleration principle, if demand for consumer goods increases, then the percentage change in the demand for machines and other investment necessary to make these goods will increase even more (and vice versa). 

In other words, if income increases, there will be a corresponding but magnified change in investment.

Ahmed Xahir
Ahmed Xahir

This is a short biography of the post author. Maecenas nec odio et ante tincidunt tempus donec vitae sapien ut libero venenatis faucibus nullam quis ante maecenas nec odio et ante tincidunt tempus donec.