Pls answer this one
Dear Student,
The components of AD (Aggregate demand ) is consumption and investment when there is closed economy.And the components of AS (Aggregate supply) are Saving and consumption.Hence when Investment exceeds (I) savings (S) AD> AS.
Regards
The components of AD (Aggregate demand ) is consumption and investment when there is closed economy.And the components of AS (Aggregate supply) are Saving and consumption.Hence when Investment exceeds (I) savings (S) AD> AS.
Regards