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Economic Definition of three-sector injections-leakages model. Defined.

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Term three-sector injections-leakages model Definition: A model used to identify equilibrium in Keynesian economics based on injections (investment and government purchases) and leakages (saving and taxes) for the three domestic sectors (household, business, and government). Equilibrium is achieved at the intersection of the saving and tax line, S + T, and the investment and government purchases line, I + G.

 

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