According to the accelerator theory, there is a tendency for investment to increase when aggregate output increases, thus accelerating the growth of output.

Name: According to the accelerator theory, there is a tendency for investment to increase when aggregate output increases, thus accelerating the growth of output.
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The accelerator theory states that when aggregate output increases, investment tends to increase, leading to further increases in output, creating a cycle of growth.

According to the Accelerator Theory, There Is a Tendency for Investment