Question

In a private closed economy _____ investment is equal to saving at all levels of GDP and equilibrium

occurs only at that level of GDP where _____ investment is equal to saving.

Answer 1

Solution:

The answers are as follows:

1.     Actual

2.     Planned

In a private closed economy, actual investment is equal to saving at all levels of GDP and equilibrium occurs only at that level of GDP where planned investment is equal to saving.