Chapter 17.2, Problem 2R

To determine

To listthe examples of leakages and injections

Explanation of Solution

Economics Concept Introduction

Introduction: Fiscal policy refers to the utilization of spending of the government and policies of tax to control economic circumstances like aggregate demand for goods and services, inflation, wages, and development of the economy. Fiscal policy is primarily concentrated on the Philosophies of the economist JMK, who concluded that economic recessions are due to a deficit in consumer consumption and the factors of aggregate demand for business investment.