he Circular Flow]]>SchumpeterCircular FlowLeakagesInjectionsKeynesClosed-system circular flow models are found in nearly all principles of economics textbooks. Because these circular flow models account for neither new-productdoi:10.2139/ssrn.2986383...
Answer and Explanation:1 If injections exceed leakages:b. the price level will rise. The circular flow is usually a closed system. Injections would add to the amount of the...
Leakagesreduce the flow of income. Injection means introduction of income into the flow. When households and firms borrow savings, they constitute injections. Injections increase the flow of income. ... As long as leakages are equal to injections, the circular flow of income continues indefinitely....