In the Keynesian model, total spending in the economy will be less than total output if leakages from the spending stream are less than injections.

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In the Keynesian model, total spending in the economy will be less than total output if leakages from the spending stream are greater than injections, not less. Leakages (such as savings, taxes, and imports) that exceed injections (such as investment, government spending, and exports) lead to a shortfall in demand, causing total spending to be less than total output.

In the Keynesian Model, Total Spending in the Economy Will