Which Is True of Leakages and Injections in the Circular

question 145

Multiple Choice

Which is true of leakages and injections in the circular flow?

• A)Leakages minus injections equal GDP.
• B)Injections minus leakages equal GDP.
• C)Leakages minus injections equal zero in equilibrium.
• D)Domestic leakages must equal domestic injections.
• E)Leakages must be greater than injections for the economy to be growing.

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Definitions:

Generativity Versus Stagnation

A stage in Erik Erikson's theory of psychosocial development where adults strive to create or nurture things that will outlast them.

Middle Adulthood

A stage of human development that typically covers the period from around age 40 to 65, focusing on personal and professional growth, stability, and facing the reality of aging.

Concrete Operational Stage

A stage in Piaget's theory of cognitive development (ages 7-12) where children gain the ability to think logically about concrete events.

Conservation

The understanding that certain properties of objects or substances do not change when their external appearance is altered, a concept children grasp in the concrete operational stage according to Piaget’s theory of cognitive development.