Planned investment is $20 billion and saving is $15 billion when GDP in the economy is $180 billion.The economy
A)is at the equilibrium level of GDP.
B)is disequilibrium and its GDP will increase.
C)is disequilibrium and its GDP will decrease.
D)has a GDP level that is greater than its aggregate expenditures.

Question

Quizplus · Accepted Answer

When planned investment exceeds saving, it indicates that aggregate expenditures are greater than GDP, leading to an increase in GDP to reach equilibrium.

Planned Investment Is $20 Billion and Saving Is $15 Billion