LEAKAGE

The process of removing capital or income from the economy. In economics, it is a circular flow between national income, output consumption, and factor payments. The two-sector model states that all incomes are sent back to employers when products and services are purchased, and it goes back to employees through salaries and dividends. In retail, it means consumers are spending money outside the local market. Leakage results in a gap between what is supplied and demanded.

Leakage also means releasing accidental or intentional release of private information before an official public announcement is made.

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