Answer:
The correct answer is:
D. total injections equal total withdrawals.
Equilibrium income in the economy refers to the level of national income where total injections into the economy, such as investment, government spending, and exports, are equal to total withdrawals from the economy, such as savings, taxes, and imports. This means that the flow of spending in the economy matches the flow of income, resulting in a stable equilibrium.
Option A is incorrect because equilibrium income does not necessarily imply full employment national income. The level of national income at equilibrium can be below or above full employment, depending on various factors.
Option B is unrelated to the concept of equilibrium income. The inflow and outflow of currency, known as balance of payments, is a different concept that focuses on international transactions.
Option C is also unrelated to equilibrium income. The equality of government expenditure and revenue refers to fiscal balance, which is a fiscal policy concept rather than directly related to equilibrium income.
Step-by-step explanation: