PRC-3 · Chapter 13 · Question 18 of 50
According to the macroeconomic circular flow model, an economy is strictly in equilibrium when:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Total Injections (I + G + X) perfectly equal Total Leakages (S + T + M)
Explanation
Macroeconomic equilibrium is established when the total withdrawals (savings, taxes, imports) exactly balance the total injections (investment, government spending, exports).
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