Economy, asked by anish16, 5 months ago

What will happen if leakage is greater than injection ?

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Answered by shambhavi1634

3

When leakages equal injections, total spending will equal total output and the macroeconomy will be in equilibrium. If leakages exceed injections, then total output exceeds total spending and the level of national output (GDP) will fall. ... Both lead to more spending in the economy and help to increase GDP.

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