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Year 1 Macroeconomics
How the Macroeconomy Works
Balance between Injections and Withdrawals
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Balance between Injections and Withdrawals:
If all the injections equal leakages, the economy is in
equilibrium.
If injections are greater than withdrawals, there will be
economic growth.
If withdrawals are greater than injections, there will be
negative
economic
growth.
Balance between Injections and withdrawals:
If all the
injections
equal
leakages
, the economy is in equilibrium.
If
injections
are
greater
than
withdrawals
, there will be economic growth.
If
withdrawals
are
greater
than
injections
, there will be negative economic growth.