Withdrawals Are Leakages From The Circular Flow Of Income And Therefore Bad For The Economy. Can You Discuss In Detail?


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In an economy the leakages or the withdrawals are the non consumption uses of income like the imports, taxes and the savings which the people of nations. Taking the example of the Keynesian injection-leakage or circular flow model, these withdrawals are joint with injections to identify equilibrium aggregate output. These withdrawals reduces the money available in the economy and therefore, can be bad for the economy. For more details click on the link:
Leakages and withdrawals

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