Refer to the diagram for a private closed economy. At the $200 level of GDP:
A. consumption is $200 and planned investment is $50 so that aggregate expenditures are
$250.
B. consumption is $200 and planned investment is $100 so that aggregate expenditures are
$300.
C. consumption is $250 and actual investment is $50 so that aggregate expenditures are
$300.
D. aggregate expenditures fall short of GDP with the result that GDP will decline.
A. consumption is $200 and planned investment is $50 so that aggregate expenditures are
$250.
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