He questioned the classical view. Keynes main quarrel with the Classicals was that prices and wages did not appear to be sufficiently flexible to ensure the full employment of resources. Keynes and the Classical Economists had differing views on how the economy works, but they did agree on one thing. The both agree on the idea of a circular flow in the economy. S Spending on consumption remains in the circular flow and represents the most important component of aggregate expenditure.
Disposable income is what is left after taxes.
Household savings flow to financial markets. Financial markets are banks and other financial institutions that are a link between savers and borrowers. Governments, firms and the rest of the world are also savers. Leakages and Injections Leakages are diversion of income from domestic spending. It is savings, taxes, and imports.