When is an economy in Equilibrium? Explain with the help of saving and investment function. Also explain the changes that take place in an economy when the economy is not in equilibrium. Use diagram.
The answer to your question is already covered in our study material.
For explanation on saving and investment approach, follow the given link and scroll down to the topic 'Saving & investment approach'
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-macroeconomics/income-determination/341_1989_5844#slide1_Aggregate Supply and Determination of Equilibrium Level of Income, Output and Employment
The changes that take place when the economy is not in equilibrium are explained under the topic ' When saving exceeds investment' and 'When investment exceeds saving' in the given link.
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-macroeconomics/income-determination/341_1989_5845#slide1_Adjustment Mechanism
For explanation on saving and investment approach, follow the given link and scroll down to the topic 'Saving & investment approach'
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-macroeconomics/income-determination/341_1989_5844#slide1_Aggregate Supply and Determination of Equilibrium Level of Income, Output and Employment
The changes that take place when the economy is not in equilibrium are explained under the topic ' When saving exceeds investment' and 'When investment exceeds saving' in the given link.
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-macroeconomics/income-determination/341_1989_5845#slide1_Adjustment Mechanism