Why do total leakages and total injections have to be equal?
Injections and leakages have to be equal because the total amount of money/income that is coming into a sector of the economy must be equal to the amount that leaves that sector so that a state of equilibrium can be achieved for the economy to function properly (Baumol & Blinder, 2008, p.125).
Discuss the limitations of national income accounting
The major limitation of national income accounting is that there are various economic activities that are not included in the national income accounting. These activities includes income from prostitution and black market. In addition, another limitation is that it ignores quality of life by focusing on how much money is ...