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Unformatted text preview: These problems are called leakages because this is money leaving the system. These could cause cut backs. Savings go back into the system for money to lend by brokers. Taxes go back to National House Holds and National Business currently going to war, pay for healthcare, military, send aid, and welfare. Our national debt is funded by foreign sources. Everything stays in Macro Equilibrium as long as Injections = Leakages we are ok as long as we are offset equally example: Import ≠ Exports Import > Exports Saving = Investment by Companies Saving < Investment by Companies Taxes = Government Spending Injection > Leakages a possibility of Inflation Injection < Leakages a possibility of Resection Measurement Problems 1) Non –Market Activity (home labor) 2) Unreported income (underground economy) 3) International Activity 4) Environmental factors...
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