-Refer to the above diagram for a private closed economy.In this economy investment:
A) decreases as GDP increases.
B) increases as GDP increases.
C) is $40 billion at all levels of GDP.
D) is $60 billion at all levels of GDP.

Question

-Refer to the above diagram for a private closed economy.In this economy investment:
A) decreases as GDP increases. 
B) increases as GDP increases. 
C) is $40 billion at all levels of GDP. 
D) is $60 billion at all levels of GDP.

Quizplus · Accepted Answer

In a private closed economy, investment is typically considered autonomous, meaning it does not change with GDP levels. The diagram indicates that investment is constant at $40 billion across all GDP levels.

-Refer to the Above Diagram for a Private Closed Economy