ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An injection occurs when funds are added to an economy from a source other than households and businesses. Sources of injections include: government spending, investment, and exports.

Detailed explanation-2: -Injections are the introduction of income into the flow, such as additions to investment, government expenditure and exports. • Leakages are the withdrawal of income from the flow, such as savings, taxation and imports.

Detailed explanation-3: -Money flows clockwise, while goods, services, and resources flow counter-clockwise. The circular flow model is a simple tool for learning about the economy. It shows the relationship between households and businesses and how these different decision-makers in the economy fit together.

Detailed explanation-4: -Economic growth can also be considered through the injections and withdrawals model. Injections are investment (I), government spending (G), and exports (X). Withdrawals are savings (S), taxation (T) and imports (M)

Detailed explanation-5: -’Injection’ means the introduction of income into the flow. When households and firms borrow savings, they constitute injections. Injections increase the flow of income. Injections can take the forms of investment, government spending and exports.