Consider the following diagram where is national output; and are injections and
withdrawals, respectively; is domestic consumption; and is the expenditure
function. Which of the following statements is correct in equilibrium? (3 marks)
(a) Injections can be calculated as the vertical distance ‘gp’.
(b) Withdrawals can be calculated as the vertical distance ‘gp’.
(c) Both (a) and (b).
(d) None of the above.