In order to have a stable economy, what is the necessary relationship between income and spending? What must then be the relationship between leakages and injections?
What will be an ideal response?
For a stable economy, businesses must sell all the output so that they are induced to produce the same amount again. This requires total spending to match total income (which equals the value of total output). For spending to match income, planned leakages must equal planned injections.
Economics
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Hyperinflations occur because governments want to spend more than they raise in taxes, and they pay for the extra purchases by printing money
Indicate whether the statement is true or false
Economics
Assume that the supply curve for tomatoes is upward sloping. If the price per pound increases from $0.99 to $1.89, a greater quantity of tomatoes will be supplied to the market
a. True b. False Indicate whether the statement is true or false
Economics