A Leakage Is

question 51

Multiple Choice

A leakage is

• A)An export from the economy.
• B)A decline in the capacity of the economy to produce goods.
• C)Income not spent directly on domestic output but instead diverted from the circular flow.
• D)A decrease in aggregate supply.

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Definitions:

Economists Define

A phrase indicating the beginning of a definition or explanation of a specific economic term or concept as provided by economists.

Business Inventories

The total amount of goods and materials held by a business for the future sale, production, or utilization.

Capacity Utilization Rate

A metric used to measure the rate at which potential output levels are being met or used.

Interest Rate

The percentage at which interest is charged or paid on amounts of money, reflecting the price of credit or returns on investment.