Question

Describe the principle f accelration and its limitations

Answer 1

The acceleration principle describes the effect quite opposite to that of multiplier. According to this, when income or consumption increases, investment will increase by a multiple amount. When income and therefore consumption of the people increases, the greater amount of the commodities will have to be produced.




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Answer 2

Explanation:

The acceleration principle is an economic concept that draws a connection between changing consumption patterns and capital investment. It states that if appetite for consumer goods increases, demand for equipment and other investments necessary to make these goods will grow even more.