If the levels of output, income, and employment have increased, there has been:
A) nothing leaked from, or injected into, the spending stream.
B) less leaked from the spending stream than has been injected.
C) more leaked from the spending stream than has been injected.
D) as much leaked from the spending stream as has been injected.

Question

Quizplus · Accepted Answer

When levels of output, income, and employment increase, it indicates that the economy is growing. This growth is typically a result of more money being injected into the economy (through investments, government spending, etc.) than is being leaked out (through savings, taxes, imports, etc.). Therefore, option B is correct because it suggests that the injections into the economy are greater than the leakages, leading to economic growth.

If the Levels of Output, Income, and Employment Have Increased