If planned investment is larger than saving, then real GDP will increase as the economy adjusts toward equilibrium.

Name: If planned investment is larger than saving, then real GDP will increase as the economy adjusts toward equilibrium.
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When planned investment exceeds saving, it indicates that businesses are investing more than what households are saving, leading to increased production and income, thus causing real GDP to rise until equilibrium is reached.

If Planned Investment Is Larger Than Saving, Then Real GDP