A leakage is
A) An export from the economy.
B) A decline in the capacity of the economy to produce goods.
C) A diversion of income from spending on domestic output.
D) A decrease in aggregate supply.
Correct Answer:
Verified
Q1: Injections include
A)Business saving.
B)Taxes.
C)Exports.
D)Consumer saving.
Q3: When the economy is at equilibrium,
A)Leakages equal
Q7: Equilibrium GDP could be upset by a
Q9: If investment spending decreases and all other
Q11: Income not spent directly on domestic output
Q12: Disposable income is less than GDP due
Q17: If injections exceed leakages,
A)Unemployment will rise.
B)Prices will
Q19: Leakages include
A)Business saving.
B)Exports.
C)Government spending.
D)Inventories.
Q23: The marginal propensity to consume is
A)That part
Q25: A decrease in sales expectations may shift
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