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Why must saving equal planned investment at equilibrium GDP in the private closed economy?
Wiki User
∙ 11y ago
Saving must equal planned investment at equilibrium GDP in the private closed economy because leaking of saving that exceeds the injection of investment causes a level of GDP that cannot be sustained. Having a leaking of saving that is lower than the injection of investment causes the GDP to drive upward. In either case is bad to not have them at equilibrium.
Wiki User
∙ 11y ago
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What will be the effect of an excess of planned investment over saving in a private closed economy with unemployed resources?
I just wasted your time. :)
Is mixed economy more reliable than planned economy?
yes mixed economy is more reliable in a mixed economy we get both the public as well as private players.on the other hand planned economy doesn't allow such freedom.mixed economy private companies are under restrictions of the government and there working is on check.
Why does equilibrium real GDP occur where C plus Ig equals GDP in a private closed economy?
The equilibrium and the real GDP usually occurs where C plus LG equals GDP in a private closed economy because of the balance in trade.
Is China mixed economy?
Yes, China has a mixed economy. If you don't know, this means that its economy consists of a combination of a market economy, in which there is free exchange of goods in a private market, and a planned economy that is totally controlled by a governmental entity.
What characterizes a socialist economy?
It is 1) Nationalism, 2) Public welfare, 3)Taxation and 4) Centrally planned economy
What will be the effect of an excess of planned investment over saving in a private closed economy with unemployed resources?
I just wasted your time. :)
Is mixed economy more reliable than planned economy?
yes mixed economy is more reliable in a mixed economy we get both the public as well as private players.on the other hand planned economy doesn't allow such freedom.mixed economy private companies are under restrictions of the government and there working is on check.
Why does equilibrium real GDP occur where C plus Ig equals GDP in a private closed economy?
The equilibrium and the real GDP usually occurs where C plus LG equals GDP in a private closed economy because of the balance in trade.
Can you name a country that has a planned economy?
North Korea is the most centrally planned economy in the world. Most others allow for *some* degree of private trade. Some other less centrally planned economies are: - China - Russia - Cuba
Is China mixed economy?
Yes, China has a mixed economy. If you don't know, this means that its economy consists of a combination of a market economy, in which there is free exchange of goods in a private market, and a planned economy that is totally controlled by a governmental entity.
What characterizes a socialist economy?
It is 1) Nationalism, 2) Public welfare, 3)Taxation and 4) Centrally planned economy
Why is net private investment of great interest to government and economists?
definition of net private investment definition of net private investment definition of net private investment
How macroeconomic equilibrium is attained?
When the demand for goods and services is equal to the goods and services offered (supplied) by firms in the public and private sector of the economy.
What is the private investment multiplier?
the private investment multiplier is the change in national income resulting from a change in private investment spending
IS INDIA a free economy planned economy or mixed economy?
India has a mixed economy in that there is private property and companies that produce products for the benefit of profit. There are many business regulations in India, this combined with the above places India as a mixed economy country.
What has the author Samuel Lurie written?
Samuel Lurie has written: 'Private investment in a controlled economy' -- subject(s): Economic policy, Investments
Which term refers to an economic system with a mix of private investment and government control?
command economy
