-In the above figure, at an income level of Y3 and planned expenditures of (C + I)1
A) planned saving exceeds planned investment.
B) the economy is in equilibrium.
C) the quantity of aggregate demand exceeds real Gross Domestic Product (GD
P).
D) there is full employment.

Question

-In the above figure, at an income level of Y3 and planned expenditures of (C + I)1
A) planned saving exceeds planned investment. 
B) the economy is in equilibrium. 
C) the quantity of aggregate demand exceeds real Gross Domestic Product (GD
P). 
D) there is full employment.

Quizplus · Accepted Answer

At an income level of Y3 where planned expenditures (C + I)1 intersect, the economy is in equilibrium because planned saving equals planned investment, meaning aggregate demand equals aggregate supply.

-In the Above Figure, at an Income Level of Y3