2.4.2 Injections and withdrawals Flashcards
1
Q
What is an injection?
A
money going into the economy
2
Q
Give 3 injections
A
- Government spending
- Exports
- Investing
3
Q
What is a withdrawal?
A
money leaving the economy
4
Q
Give 3 withdrawals
A
- saving
- imports
- taxes
5
Q
What happens when injections are bigger than withdrawals (i.e we have net injections)?
A
- output is greater than expenditure
- national output, income and expenditure will decrease
6
Q
What happens when withdrawals are bigger than injections (i.e we have net withdrawals)?
A
- expenditure is greater than output
- national output, income and expenditure will increase
7
Q
What happens when withdrawals = injections?
A
equilibrium
