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Saved $200 /c+1g 180 160 C 140 120 Aggregate Expenditures (Billions) 100 80 - 60 20 0 $20 40 60 80 100 120 140 160

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Saved $200 /c+1g 180 160 C 140 120 Aggregate Expenditures (Billions) 100 80 - 60 20 0 $20 40 60 80 100 120 140 160 180 200 Real GDP (Billions) Refer to the diagram for a private closed economy. Aggregate saving in this economy will be zero when GDP is $180 billion. C+ /g cuts the 45-degree line. GDP is also zero. O GDP is $60 billion

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