-Refer to the above diagram for a private closed economy.Aggregate saving in this economy will be zero when: A) C + I_g cuts the 45-degree line. B) GDP is $180 billion. C) GDP is $60 billion. D) GDP is also zero.

Question

Quizplus · Accepted Answer

Aggregate saving is zero when consumption (C) equals GDP, which occurs at the break-even point. In the context of the diagram, this is when GDP is $60 billion.

-Refer to the Above Diagram for a Private Closed Economy