Leakages and injections have a great influence on economic activity, as they basically are economic activity. Without leakages and injections there would be no circular flow, without which the economy would run as it does now. The government also plays a major role in the running of the economy as it has a great influence over what goes in and out of the circular flow by the way of taxation, imports and exports.
The five-sector circular flow of income model is a theoretical way for economists to describe certain features of economic activity and the linkages between the main sectors.
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