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Business Economics

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ARSALAN SATTAR
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17 views

Business Economics

Uploaded by

ARSALAN SATTAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Give a critical review of principle of acceleration.

Atleast 10 points are required

Principle of Acceleration

The acceleration principle rests upon a few assumptions.

1. The capital-output ratio is assumed to be remaining constant.


2. The firms operate without excess capacity, i.e., firms cannot expand output with decreasing
average cost of production.
3. The firms will increase its capacity to meet every increase in real spending. That is resources
(especially supply of credit and capital) demanded by the firms are assumed to be elastic.
4.

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