<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> <P> S + T + M = I + G + X $100 + $150 + $50 = $50 + $100 + $150 $300 = $300 </P> <P> Therefore, since the leakages are equal to the injections the economy is in a stable state of equilibrium . This state can be contrasted to the state of disequilibrium where unlike that of equilibrium the sum of total leakages does not equal the sum of total injections . By giving values to the leakages and injections the circular flow of income can be used to show the state of disequilibrium . Disequilibrium can be shown as: </P>

Circular flow of income in two sector economy with diagram