Suppose an economy operates at a real GDP level of $855, where saving = $400; investment = $95; government spending = $365; taxes = $130; imports = $210; exports = $170 . Which of the following statements is true in the light of the given information?

a. Aggregate expenditures will fall, because total injections exceed total leakages by $110.
b. Real GDP will increase, because total injections are less than $855.
c. The economy will be in equilibrium, because leakages equal injections.
d. Real GDP will fall, because total leakages exceed total injections by $110.
e. Inventories will rise, because planned saving exceeds planned investment.


d

Economics

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