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What is the condition for equilibrium in the complete circular flow model?
Leakages = Injections
Why are injections and leakages are equal?
Leakages in basements can be triggered by several factors. When basement walls are not waterproofed from the exterior, they may become vulnerable to moisture seepage during heavy rainfall. To prevent this, discuss a suitable exterior waterproofing option with your contractor and protect your basement from standing water.
What happens when leakages are greater than injections?
if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow
Difference between keynesian model and AD-AS model?
Keynesian model is able to show how leakages and injections can influence the economy. AD-AS model is able to show changes in prices (inflation).
What would happen if injections are greater then leakages?
If injections into an economy exceed leakages, it results in an overall increase in economic activity. This typically leads to higher levels of spending, investment, and consumption, which can stimulate growth and create jobs. However, if this imbalance continues for an extended period, it may also lead to inflationary pressures as demand outstrips supply. Overall, maintaining a balance between injections and leakages is crucial for sustainable economic health.
When the leakages and injections of the economy are balanced it is called what?
equilibrium
What are spending lekages and injections?
Spending leakages and injections refers to the income generated in production that does not completely return to the product markets in form of consumer spending. The macroeconomic model balances the non-consumption expenditures on the injections and the non-consumption uses of the leakages.
Explain the terms injections and leakages along with some factors?
balls
What is the condition for equilibrium in the complete circular flow model?
Leakages = Injections
Why are injections and leakages are equal?
Leakages in basements can be triggered by several factors. When basement walls are not waterproofed from the exterior, they may become vulnerable to moisture seepage during heavy rainfall. To prevent this, discuss a suitable exterior waterproofing option with your contractor and protect your basement from standing water.
What happens when leakages are greater than injections?
if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow
Difference between keynesian model and AD-AS model?
Keynesian model is able to show how leakages and injections can influence the economy. AD-AS model is able to show changes in prices (inflation).
What is the difference between leakages and injections into the income flow of a country?
what do you want me to comment about leakeges and injection
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
What is the difference between leakages and injections?
Leakages refer to money flowing out of the circular flow of income, such as savings, taxes, and imports, which reduce the total spending in the economy. Injections, on the other hand, refer to money flowing into the circular flow of income, such as investment, government spending, and exports, which add to the total spending in the economy. Together, leakages and injections help maintain equilibrium in the economy.
What is a product market equilibrium?
Injections = Leakages (J=W) Iu=0 (unplanned investment = 0) one more condition
What are the leakages from the circular flow?
You have leakages from your circular flow.
