If the economy were at or near full employment and leakages from the spending stream were less than injections, you would expect the general level of prices to:

Question

Quizplus · Accepted Answer

When leakages are less than injections in an economy at or near full employment, it indicates that demand is outstripping supply, leading to upward pressure on prices, hence an increase in the general level of prices.

If the Economy Were at or near Full Employment and Leakages