Consider a closed economy in the long run.A country with a low national saving rate (as a fraction of real GDP)is likely to have

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In the long run, a low national saving rate means that sustained high investment is not possible, which will result in a low growth rate. While a low saving rate might initially lead to high aggregate expenditure out of any given income, this is not sustainable in the long run. Additionally, a low saving rate means the country will have trouble achieving potential real national income in both the short and long run. The AS curve is not likely to continually shift to the right in this scenario.

Consider a Closed Economy in the Long Run