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December 3, 2021 

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LEAKAGE: A non-consumption uses of income, including saving, taxes, and imports. Leakages are combined with injections in the injection-leakage model used to identify equilibrium aggregate output in Keynesian economics. The notion of leakage is best viewed through the circular flow, in which saving, taxes, and imports are "leaked" out of the main flow between output, factor payments, national income, and consumption.

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DEMAND AND SUPPLY DECREASE: A simultaneous decrease in the willingness and ability of buyers to purchase a good at the existing price, illustrated by a leftward shift of the demand curve, and a decrease in the willingness and ability of sellers to sell a good at the existing price, illustrated by a leftward shift of the supply curve. When combined, both shifts result in a decrease in equilibrium quantity and an indeterminant change in equilibrium price.

     See also | demand and supply increase | demand increase and supply decrease | demand decrease and supply increase | demand decrease | supply decrease | demand shock | supply shock | demand decrease | supply increase | demand determinants | supply determinants | demand curve | supply curve | comparative statics | ceteris paribus | economic analysis | graphical analysis | market equilibrium | change in demand | change in supply | price ceiling | price floor | market equilibrium, graphical analysis | aggregate market shocks |


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MARKET-ORIENTED ECONOMY

A mixed economy that relies heavily on markets to answer the three questions of allocation, but with a modest amount of government involvement. While it is commonly termed capitalism, the term market-oriented economy is much more descriptive of the structure of the economy. The United States is the primary example of a market-oriented economy.

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