In the analyses of a single product equilibrium is attained where supply and demand for the commodity is equal and there is no tendency for the price change Wherever we are not in equilibrium force will work to re-establish equilibrium

The same is the whether the analysis is for the entire market if the total demand for the ail goods and services is not to the total supply in equilibrium

We have assured that equilibrium prevailed in circular  flow of income represented by figure 3.1

By requiring that all household earnings be spent in the product market and business production can be offered for no discrepancy between total demand and the total supply of goods and services.

The above economy can be classified as being in neutral equilibrium neutral equilibrium means there are no pressures for change established set of flows will simply persist for ever.