Using the Keynesian approach, an economy with $9.0 trillion in total spending and $8.4 trillion in total output is operating where:
A) injections exceed leakages by $600 billion.
B) leakages exceed injections by $600 billion.
C) injections plus leakages add up to $600 billion.
D) injections plus leakages add up to $17.4 trillion.

Question

Quizplus · Accepted Answer

In the Keynesian approach, when total spending exceeds total output, it indicates that injections (such as investment, government spending, and exports) exceed leakages (such as savings, taxes, and imports) by the difference, which is $600 billion in this case.

Using the Keynesian Approach, an Economy with $9