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When planned saving is less than planned investment, it indicates a situation when:
A AD < AS B AD = AS C D None of these
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When planned savings is less than the planned investment , then the planned inventory rises above the desired level which denotes that the consumption is the economy was less then the expected level which indicates at less aggregate demand in comparison to aggregate supply.
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I can certainly help with that query! The situation described, where planned savings are less than planned investment, signifies an imbalance between saving and investment in an economy. It suggests that there's insufficient saving to fund all the planned investments. In economic terms, this scenario generally points toward excess demand, meaning aggregate demand surpasses aggregate supply. This often leads to an increase in prices due to the high demand for goods and services. This mismatch can affect economic stability and needs addressing for a healthy economy.
Regarding the concepts mentioned in the article:
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Planned saving and investment: Planned saving refers to the intended amount an individual or entity decides to save, while planned investment signifies the intended expenditure on investments.
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Aggregate Demand (AD) and Aggregate Supply (AS): AD is the total demand for goods and services within an economy, while AS represents the total supply of goods and services in that same economy.
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Consumption: This refers to the use of goods and services by households or individuals.
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Economic Inventory: This typically relates to the stock of goods or materials held in an economy.
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Deviation: It signifies the difference or variation between planned and actual performance or outcomes.
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Azad Hind Radio: This was a radio service broadcast by the Azad Hind Government during World War II. Its motive was to propagate the cause of Indian independence and to garner support for the Indian National Army.
Let me know if there's anything specific you'd like to delve into further!
