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Explain what are the changes that …

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Explain what are the changes that will take place in an economy when planned investment is not equal to planned saving?

Posted by Kunal Gautam 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Ritu Manon 6 years, 11 months ago

When planned investment is not equal to planned saving there are two conditions either I is greater than S or I is less than S . When I is greater than S it means aggregate demand is more than AS. So inventory decreases as a result there is more profit to producer. Producer produces more which inturn increases income , output&employment.vice versa is the case when I is less thanS

Abhishek Pandey 6 years, 11 months ago

Pta ni

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