INJECTION-LEAKAGE MODEL: A model used in Keynesian economics based on the equality of non-consumption expenditures (or injections) and non-consumption uses of income (leakages). On one side of the equality is saving, taxes, and imports -- the non-consumption leakages. On the other side of the equality is investment, government purchases, and exports -- the non-consumption injections. The injection-leakage model provides an alternative to the Keynesian cross for identifying equilibrium aggregate output. See also | Keynesian economics | injection | leakage | saving | tax | import | investment expenditures | government purchases | export | Keynesian cross | circular flow |
