Investment, government spending, and exports are three injections in the economy. They contribute to increasing the demand for goods and services in the economy and, therefore, stimulate more job and income creation. What is injection? An
Aggregate Output
Injections and Leakages in the Circular Flow of Income: Examples and Impacts
What's it: Injection and leakage illustrate how income in the economy does not flow entirely in a circular flow diagram. Leakages refer to withdrawals, for example, due to savings, taxation, and imports. They are withdrawn because income is not
Aggregate Output: Meaning, Determinants, Effects on Economy
Aggregate output is the total value of goods and services produced in the economy during a certain period, usually one year. Economists typically use the gross domestic product (GDP) as its measure. The statistical bureau calculates it by adding