Acceleration Principle

Pronunciation: /ækˌsɛləˈreɪʃən ˈprɪnsəpəl/

Definitions of acceleration principle

noun a principle in economics that suggests that an increase in demand for goods will lead to an increase in production to meet that demand

Example Sentences

A1 The acceleration principle states that as demand for goods and services increases, businesses will invest more in production.

A2 According to the acceleration principle, an increase in consumer spending leads to higher levels of investment by businesses.

B1 Economists often use the acceleration principle to explain how changes in consumer demand can impact overall economic growth.

B2 The acceleration principle suggests that fluctuations in demand can lead to cycles of economic expansion and contraction.

C1 The acceleration principle is a key concept in macroeconomics that helps to explain the relationship between consumption and investment.

C2 Understanding the acceleration principle is essential for policymakers seeking to manage economic growth and stability.

Examples of acceleration principle in a Sentence

formal The acceleration principle states that an increase in demand for goods will lead to an even greater increase in investment.

informal According to the acceleration principle, when people want more stuff, businesses invest more to make it.

slang The acceleration principle basically says that when people start buying more, companies start making more.

figurative Just like a snowball rolling downhill, the acceleration principle shows how demand can quickly build upon itself.

Grammatical Forms of acceleration principle

• plural: acceleration principles
• comparative: more acceleration principle
• superlative: most acceleration principle
• present tense: acceleration principle
• future tense: will accelerate principle
• perfect tense: has accelerated principle
• continuous tense: is accelerating principle
• singular: acceleration principle
• positive degree: acceleration principle
• infinitive: to accelerate principle
• gerund: accelerating principle
• participle: accelerated principle

Origin and Evolution of acceleration principle

First Known Use: 1936 year

Language of Origin: English

Story behind the word: The term 'acceleration principle' was coined by economist John Maynard Keynes in his book 'The General Theory of Employment, Interest and Money' published in 1936.

Evolution of the word: Originally, the acceleration principle referred to the idea that an increase in aggregate demand leads to a larger increase in national income through the multiplier effect. Over time, the concept has been further developed and applied in various economic models to explain the relationship between investment and economic growth.