A closed economy was observed in two different years to be operating with levels of output at: (a) aggregate supply was equal aggregate demand for goods and services but planned domestic investment was greater than planned domestic saving ( b) aggregate supply was equal aggregate demand for goods and service but planned domestic investment was less than planned domestic saving. Use a diagram to explain the forces that would move the economy towards a stable equilibrium in each case

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A closed economy was observed in two different years to be operating with levels of output at:

(a) aggregate supply was equal aggregate demand for goods and services but planned domestic investment was greater than planned domestic saving

( b) aggregate supply was equal aggregate demand for goods and service but planned domestic investment was less than planned domestic saving. Use a diagram to explain the forces that would move the economy towards a stable equilibrium in each case.

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