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Distinguish between withdrawals and injection expenditure in the economy by the Government?
Wiki User
∙ 15y ago
withdrawals and injections are both a part of the circular flow of income. Injections are things that are providing finance or services into the economy for example exports. Withdrawals on the other hand are the things that are being taken out of the economy such as imports. If withdrawals are bigger then injections the country would be facing a deficit and negative economic growth. If withdrawals are less then injections then a country would be facing a budget surplus and economic growth.
Wiki User
∙ 15y ago
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What is Distinguish between withdrawals and injection expenditure?
http://wiki.answers.com/Q/What_is_Distinguish_between_withdrawals_and_injection_expenditure"
What are the injection into the circular flow of income?
injections into the circular flow of income are basically household consumers' net savings, net taxes and import expenditure. net savings from household consumers goes to the banks which in turn uses the money for investment expenditure(withdrawals) net taxes, goes to the govt which in turn uses it for government expenditure.(withdrawals) import expenditure goes abroad, and in turn uses it for export expenditure. Y= C + I + G + ( X-M)
What are the examples of both injection and withdrawal leakage in the national economy?
The Examples of Injections are-Investment-Government Expenditure-ExportsThe Examples of Leakage are-Saving-Taxes-imports
What is three-sector economy?
In a Three-sector economy ,along with the household sector & business sector there is government sector too.Because the government can influence on the circular flow of income in 2 ways.1.It collects taxes[=T] from households & firms,and2.it makes various payments [=G] to household & business sectors.Here taxes can be taken as a lekage & government expenditure as an injection.
What is the impact of Injections into the spending stream?
The impact of injections into the spending stream is that injections add to main income spending stream in economy . Often times , people think of government spending as an injection , but that is misleading . For the government to ''inject'' into the spending stream , it must first take something from it . As you would if you were to donate blood . Your blood cannot be donated to another body if it has not yet been taken from you . Injections are an addition to the income of firms which do not normally arise from the expenditure of households e.g. changes in investment , government spending or exports .
What is Distinguish between withdrawals and injection expenditure?
http://wiki.answers.com/Q/What_is_Distinguish_between_withdrawals_and_injection_expenditure"
What are the injection into the circular flow of income?
injections into the circular flow of income are basically household consumers' net savings, net taxes and import expenditure. net savings from household consumers goes to the banks which in turn uses the money for investment expenditure(withdrawals) net taxes, goes to the govt which in turn uses it for government expenditure.(withdrawals) import expenditure goes abroad, and in turn uses it for export expenditure. Y= C + I + G + ( X-M)
Difference between withdrawals and injection?
withdrawals
What are the examples of both injection and withdrawal leakage in the national economy?
The Examples of Injections are-Investment-Government Expenditure-ExportsThe Examples of Leakage are-Saving-Taxes-imports
Is saving an injection into and investment a leakage from the income expenditure stream?
Savings are a leakage from the income expenditure stream because they drain on the economy
What is three-sector economy?
In a Three-sector economy ,along with the household sector & business sector there is government sector too.Because the government can influence on the circular flow of income in 2 ways.1.It collects taxes[=T] from households & firms,and2.it makes various payments [=G] to household & business sectors.Here taxes can be taken as a lekage & government expenditure as an injection.
Why is there a shortage of vitamin B12 for injection?
the government is stock piling it. at the underground city that does not exist.
What is the impact of Injections into the spending stream?
The impact of injections into the spending stream is that injections add to main income spending stream in economy . Often times , people think of government spending as an injection , but that is misleading . For the government to ''inject'' into the spending stream , it must first take something from it . As you would if you were to donate blood . Your blood cannot be donated to another body if it has not yet been taken from you . Injections are an addition to the income of firms which do not normally arise from the expenditure of households e.g. changes in investment , government spending or exports .
Explain the effects of an unexpected increase in Consumers Expenditure on GNP in an open economy with a government sector using both Keynesian cross and 45 degree diagrams 60 Marks?
An unexpected increase in Consumers Expenditure on GNP has a huge impact on GNP in an open economy country. This is because the increase of consumer expenditure will boost the consumption, and therefore this will enhance the overall productivity of the country. as the output increased, this will result in a reduction of unemployment rate in the country. This will also enhance the disposable income for households, as they have extra money to spend, then this will cause further enhancement of consumption. Also think about leakages and injection within the economy if people begin spending more on export as GNP rises to make use of cheaper raw materials or goods. injections too- if consumer expenditure increases, firms revenues increase thus giving them the opportunity to finance current and future investments.
What is difference between injection rate and injection pressure?
The injection rate is the number of injections. The injection pressure is the pressure the injection is under.
Why is planned investment called an injection?
Planned investment is called an injection because it refers to new spending or investment that is added to the circular flow of income and expenditure in an economy. It injects additional income and spending into the economy, stimulating economic activity and potentially increasing aggregate demand. In contrast, unplanned changes in inventory levels are called leakages because they remove income and spending from the circular flow.
With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals or leakages?
When injection exceeds leakage aggregate demand will high it followed by high employment , with rise in price economic growth will ensures . For detail explanation you can take from Tutorpace
