**Question:**When Aggregate Supply (AS) exceeds Aggregate Demand (AD), leakages from spending exceed injections into spending.- ○ True- ○ False**Explanation:**In economics, the balance between Aggregate Supply (AS) and Aggregate Demand (AD) is crucial for understanding overall economic health. When AS exceeds AD, it implies that the total output in the economy is greater than what is being demanded. This can lead to increased inventories and potentially lower production. In such a situation, leakages (like savings, taxes, and imports) often surpass injections (like investments, government spending, and exports) into the economy, potentially causing a contraction. Select the appropriate response to reflect the truthfulness of this statement.

Answered: When AS exceeds AD, leakages from…

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Economics

When AS exceeds AD, leakages from spending exceed injections into spending. O True O False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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