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When supply of money is contact with high saving . In other words we can say the saving is grater than investment .Consequences is high employment , price falls , low of aggregate demand . For better explanation you can help from Tutorpace

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Q: What is an economic leakage?
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What is economic leakage?

what is economic leakage


With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals or leakages?

When injection exceeds leakage aggregate demand will high it followed by high employment , with rise in price economic growth will ensures . For detail explanation you can take from Tutorpace


What are the examples of both injection and withdrawal leakage in the national economy?

The Examples of Injections are-Investment-Government Expenditure-ExportsThe Examples of Leakage are-Saving-Taxes-imports


What is the meaning of economics leakage?

In economics, a leakage is defined as something that leaves the economy (is a non-consumptive usage of income . Using the Circular Flow of Income, the common leakages in an economy are savings, taxation and imports.Savings are a leakage, because when an individual saves money, this means that this income isn't being used up as consumption, therefore is defined as a leakage. Taxation is also a leakage, because the government takes money out of the economy (away from tax-payers), meaning that people can't spend that money anymore since the government has the money now, therefore is a leakage.Imports are considered leakages, because since Australia has to pay foreign industries for the imports, money is going out of the country, and is therefore a leakage.


What are the injection and leakage in the economy?

In terms of consumer spending, injection is spending by consumers on consumables (consumption) and leakage is spending by consumers on non-consumables (e.g.) savings; investment; taxation).

Related questions

What is economic leakage?

what is economic leakage


What is the spelling of leakage?

You have it spelled correctly. It's leakage.


Is a household a leakage or injection?

Leakage


Stoma since colorectal cancer - and leakage - can is be anastomotic leakage?

yes anastomotic leakage


What can cause oil leakage?

oil leakage


How do say 'leakage' in Arabic?

Leakage : tassarrob written as : تسرب


When was Strictly Leakage created?

Strictly Leakage was created in 2007.


What is seat leakage test in safety valves?

Seat leakage is defined as leakage that is internal to a valve-between the inlet and outlet sides of the valve-when the valve is in its closed position. It is not limited to leakage across the valve seat, but also encompasses all leakage across the valve trim when the valve is in the closed position. Leakage across internal trim seals, such as piston rings, and across trim-to-body seals, such as gaskets, can be counted as seat leakage. It is important to note that, while leakage through valve stem packing is of growing concern in the industry, governing industry standards address this type of leakage separately and do not consider it to be a form of seat leakage.


When was the Union Carbide gas leakage?

The union gas leakage held in 1984


When configured properly what can avoid data leakage?

A firewall can avoid data leakage.


What is leakage in plural form?

The plural form for the noun leakage is leakages.


How do you test leakage on equipment?

by measuring the insulation resistance then by usig the formula for finding leakage current leakage current =voltage applied /resistance measured by megger.