Refer to the above diagram for a private closed economy.Planned and actual investment will be equal at:
A)all levels of GDP below $200.
B)all levels of GDP above $200.
C)all levels of GDP between $200 and $600.
D)$600 only.

Question

Refer to the above diagram for a private closed economy.Planned and actual investment will be equal at:
A)all levels of GDP below $200. 
B)all levels of GDP above $200. 
C)all levels of GDP between $200 and $600. 
D)$600 only.

Quizplus · Accepted Answer

At $600 GDP, planned investment and actual investment intersect and are equal. This is the only level of GDP where planned and actual investment are equal.

Refer to the Above Diagram for a Private Closed Economy