Economics 9708 · AS & A Level · Aggregate demand and aggregate supply

Aggregate demand and aggregate supply — practice question

In a closed economy without a government, the equilibrium level of income is reached when

  • Aplanned consumption is equal to desired investment.
  • Bplanned consumption is equal to desired savings.
  • Cplanned investment is equal to desired savings.
  • Dplanned savings plus desired investment is equal to consumption.

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