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Refer to the diagram for a private closed economy. At the equilibrium level of GDP, investment and saving are both: $ 100 . $ 50 . $ 40 .$ 20

User Puemos
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Final answer:

The Keynesian Cross Diagram question seeks to establish the equality of investment and savings at equilibrium GDP in a private closed economy. Equilibrium is where aggregate expenditure meets national income, but more information would be required to precisely determine the investment and savings values at this point.

Step-by-step explanation:

The question refers to a Keynesian Cross Diagram in the context of a private closed economy to determine at what level investment and saving are equal in the equilibrium state of the Gross Domestic Product (GDP). In Keynesian economics, equilibrium GDP occurs where the aggregate expenditure (which includes after-tax consumption, government spending, investment, exports, and imports) is equal to the national income. This point is illustrated by the intersection of the aggregate expenditure schedule with the 45-degree line in the provided diagram. The diagrams indicate that at the equilibrium level, the real GDP is $6,000.

However, without the explicit graphical representation, investment and saving values at this equilibrium cannot be definitively determined from the given information. In a closed economy, the savings is equal to investment at equilibrium, as per the equation S = I (where S is savings and I is investment). If additional data, such as the amount of leakage and injection or the slope of the aggregate expenditure line, was provided, it would be possible to find the exact figures for savings and investment. Thus, in response to the original question regarding specific values, it's imperative to note that more information is needed to accurately determine if investment and saving are both $100, $50, $40, or $20 at the equilibrium GDP level.

User Geofferey
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