PRC-3 · Chapter 13 · Question 10 of 50
If an economy is in macroeconomic equilibrium, which of the following equations representing leakages and injections must hold true?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Savings + Taxes + Imports = Investment + Government Spending + Exports
Explanation
Macroeconomic equilibrium requires that total leakages (S + T + M) perfectly balance out total injections (I + G + X) in the circular flow of income.
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