-Refer to the above diagram for a private closed economy.At the $100 level of GDP:
A) aggregate expenditures will exceed GDP,causing GDP to fall.
B) planned investment will exceed saving,but actual investment will be equal to saving.
C) households will consume more than their income.
D) saving will be $40.

Question

-Refer to the above diagram for a private closed economy.At the $100 level of GDP:
A) aggregate expenditures will exceed GDP,causing GDP to fall. 
B) planned investment will exceed saving,but actual investment will be equal to saving. 
C) households will consume more than their income. 
D) saving will be $40.

Quizplus · Accepted Answer

In a private closed economy, planned investment can exceed saving, but actual investment will always equal saving due to adjustments in inventories.

-Refer to the Above Diagram for a Private Closed Economy