THREE-SECTOR INJECTIONS-LEAKAGES MODEL: 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. See also | injections-leakages model | S-I model | Keynesian economics | Keynesian equilibrium | saving line | investment line | injection | leakage | household sector | business sector | government sector | fiscal policy | three-sector Keynesian model | two-sector injections-leakages model | four-sector injections-leakages model |
