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Economic Definition of injections-leakages model multiplier. Defined.

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Term injections-leakages model multiplier Definition: An analysis of the multiplier principle using the injections-leakages model intersection between the injections line and the leakages line. The injections-leakages model analysis illustrates the Keynesian multiplier as a shift of the injections line (or leakages line) and a subsequent change of the equilibrium level of aggregate production. This analysis illustrates the important role played the marginal propensity to consume (and save), which affects the slope of the leakages line. An alternate but comparable analysis of the multiplier principle is accomplished using the Keynesian cross.

 

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