Refer to the Diagram for a Private Closed Economy

Multiple Choice

Refer to the diagram for a private closed economy. At the $200 level of GDP,

A) consumption is $200 and planned investment is $50, so aggregate expenditures are $250.
B) consumption is $200 and planned investment is $100, so aggregate expenditures are $300.
C) consumption is $250 and actual investment is $50, so aggregate expenditures are $300.
D) aggregate expenditures fall short of GDP, with the result that GDP will decline.