Refer to the information provided in Figure 9.1 below to answer the questions that follow. Figure 9.1
-Refer to Figure 9.1. Injections = leakages

Question

Refer to the information provided in Figure 9.1 below to answer the questions that follow.  Figure 9.1
-Refer to Figure 9.1. Injections = leakages

Quizplus · Accepted Answer

Injections equal leakages at equilibrium, where aggregate expenditure (AE) equals output (Y). At this point, there is no tendency for the economy to move either towards a surplus or towards a deficit, as all injections (investment, government spending, and exports) are fully offset by all leakages (savings, taxes, and imports).

Refer to the Information Provided in Figure 9