The acceleration principle is used to explain:
A) a widely fluctuating demand for business goods.
B) how to calculate the activity indicator of buying power.
C) how demand is derived.
D) the concentration of buying power in a relatively few firms.
E) reductions in pure unit production costs when total quantity produced increases.

Question

Quizplus · Accepted Answer

The acceleration principle explains how small changes in consumer demand can lead to larger changes in demand for business goods, causing fluctuations.

The Acceleration Principle Is Used to Explain