-Refer to the above diagram for a private closed economy.At the $300 level of GDP:
A) aggregate expenditures and GDP are equal.
B) consumption is $250 and planned investment is $50.
C) saving equals investment.
D) all of the above are true.

Question

-Refer to the above diagram for a private closed economy.At the $300 level of GDP:
A) aggregate expenditures and GDP are equal. 
B) consumption is $250 and planned investment is $50. 
C) saving equals investment. 
D) all of the above are true.

Quizplus · Accepted Answer

At the $300 level of GDP in a private closed economy, aggregate expenditures (consumption plus planned investment) equal GDP, consumption is $250 and planned investment is $50, and saving equals investment, making all the statements true.

-Refer to the Above Diagram for a Private Closed Economy