Refer to the diagram for a private closed economy. At the $200 level of GDP,
A) consumption is $200 and planned investment is $50, so aggregate expenditures are $250.
B) consumption is $200 and planned investment is $100, so aggregate expenditures are $300.
C) consumption is $250 and actual investment is $50, so aggregate expenditures are $300.
D) aggregate expenditures fall short of GDP, with the result that GDP will decline.

Question

Refer to the diagram for a private closed economy. At the $200 level of GDP,
A) consumption is $200 and planned investment is $50, so aggregate expenditures are $250. 
B) consumption is $200 and planned investment is $100, so aggregate expenditures are $300. 
C) consumption is $250 and actual investment is $50, so aggregate expenditures are $300. 
D) aggregate expenditures fall short of GDP, with the result that GDP will decline.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram for a private closed economy. At the $200 level of GDP,
A) consumption is $200 and planned investment is $50, so aggregate expenditures are $250. 
B) consumption is $200 and planned investment is $100, so aggregate expenditures are $300. 
C) consumption is $250 and actual investment is $50, so aggregate expenditures are $300. 
D) aggregate expenditures fall short of GDP, with the result that GDP will decline.

Refer to the Diagram for a Private Closed Economy