<Dl> <Dd> Table 1 All leakages and injections in the five sector model </Dd> </Dl> <Dd> Table 1 All leakages and injections in the five sector model </Dd> <P> In terms of the five sector circular flow of income model the state of equilibrium occurs when the total leakages are equal to the total injections that occur in the economy . This can be shown as: </P> <P> This can be further illustrated through a fictitious economy where: </P>

The circular flow of income in an open economy