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if leakages are greater than injection the circular flow will be in disequilibrium because more money is leaving the circular flow

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What happens to GDP when injections are larger than leakages?

When injections are larger than leakages in an economy, GDP tends to increase. Injections, such as government spending, investment, and exports, add to the overall economic activity, while leakages, such as savings, taxes, and imports, withdraw money from the economy. The net effect of a higher level of injections leads to greater production and income, stimulating economic growth. This dynamic can create a multiplier effect, further amplifying the increase in GDP.


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