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December 5, 2025 

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NORMAL GOOD: A good for which an increase in income causes an increase in demand, or a rightward shift in the demand curve. If demand increases as income increases, it is a normal good or a good with a positive income elasticity of demand. A normal good is one of two alternatives falling within the income determinant of demand. The other is an inferior good.

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INDUCED IMPORTS: Imports from the foreign sector that depend on domestic income or production (especially national income and gross domestic product). That is, changes in income induce changes in imports. Induced imports are measured by the marginal propensity to import (MPM) and are reflected by a positive slope of imports line. Induced imports are the reason for induced net exports, generating a negatively sloped net exports line. Autonomous net exports are due to a combination of autonomous exports and autonomous imports.

     See also | autonomous exports | net exports line | marginal propensity to import | induced expenditures | induced consumption | induced government purchases | induced investment | autonomous exports | autonomous net exports | slope, net exports line | intercept, net exports line | injections | leakages | Keynesian economics | circular flow | aggregate expenditures | imports | exports | imports | net exports of goods and services | macroeconomics | foreign sector | national income | gross domestic product | business cycles | aggregate expenditures | aggregate expenditures line | net exports determinants | Keynesian model | Keynesian equilibrium | injections-leakages model | aggregate demand | paradox of thrift | fiscal policy | multiplier |


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INDUCED IMPORTS, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: December 5, 2025].


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LEAKAGES LINE

A graphical representation of the relation between the level of aggregate production and one or more leakages. The three leakages (non-consumption uses of the income generated from aggregate production) are saving, taxes, and imports. The leakages line sequentially adds, or layers, each of these three uses of income depending on the number of sectors used in the analysis (two, three, or four). The slope of the leakages line depends on which if any of the uses of income are induced by aggregate production. The leakages line is combined with the injections line (containing investment expenditures, government purchases, and exports) in the Keynesian injections-leakages model.

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Today, you are likely to spend a great deal of time searching for a specialty store seeking to buy either a rim for your spare tire or decorative celebrity figurines. Be on the lookout for letters from the Internal Revenue Service.
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The 1909 Lincoln penny was the first U.S. coin with the likeness of a U.S. President.
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