In a closed economy,the equilibrium national income occurs where

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In a closed economy, equilibrium national income occurs where the C + I + G line intersects with the 45-degree line. At this point, planned expenditures (C + I + G) equal national income, and there are no unplanned changes in inventory levels. Options B and C are incorrect because they do not necessarily represent a state of equilibrium. If planned expenditures exceed national income, it would lead to an increase in inventory levels, and if savings exceed planned investment, it would lead to a decrease in inventory levels.

In a Closed Economy,the Equilibrium National Income Occurs Where