-At an output level of $400 billion:
A) leakages exceed injections by $20 billion.
B) injections exceed leakages by $20 billion.
C) leakages plus injections total $780 billion.
D) the economy is operating below its equilibrium level of output.

Question

-At an output level of $400 billion:
A) leakages exceed injections by $20 billion. 
B) injections exceed leakages by $20 billion. 
C) leakages plus injections total $780 billion. 
D) the economy is operating below its equilibrium level of output.

Quizplus · Accepted Answer

Leakages exceeding injections by $20 billion indicates that the economy is not in equilibrium, as more money is leaving the economy than entering, suggesting the output level is below equilibrium.

-At an Output Level of $400 Billion