Economics Question; please help :D (1 Viewer)

[ebbygoo]

As title, I am doing some revision questions and came across this:
'Explain why an economy with total leakages greater than total injections will shift towards equilibrium'.

I couldn't do this and checked in textbook, which was no help.
The only thing I can think of is that a Government would step in and increase expenditure to move it back to equilibrium; however, it is a 7 line question and also what I just said wouldn't always be the case.


Anybody?

Thanks

 

[Kurosaki]

If u have too many leakages then the amount of money available to leak will become less over time and thus, assuming that the injection level remains the same, It will like become equal

 

[ebbygoo]

That makes sense thanks

 

[Kurosaki]

Np