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From course:

Economics A Level (DONEEEEEEE)

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Question:

What does the Economy being in -Equilibrium -Injections Greater -Withdrawals Greater

Author: eric_galvao



Answer:

-Economy in Equilibrium means Injections = Withdrawals -More Injections can lead to greater Expenditure compared to Output, so Firms will Increase Output leading to an Increase in National Output, Income & Expenditure [And thus Economic Growth] -More Withdrawals can lead to Output being Greater than Expenditure [Domestic Demand plummets] leading to less Output. National Output, Income & Expenditure will Fall


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