Are Savings and Investment taken Ex Ante or Ex Post while calculating equilibrium Point

We always take ex ante figures ( that is planned savings and investments)

Explanation

Ex Ante means 'Before the event'

and

Ex Post means 'After the event'

While Calculating equilibrium Point, we take Ex ante Savings and Investment

Ex Ante Savings

It refers to amount of saving which households plan to save a different levels of income

Ex Ante Investment

It refers to amount of investment which firms plan to invest at different levels of income

Only at equilibrium Point

Ex Ante Savings =EX ante Investment

This point is called equilibrium Point

Why don't we take Exposit Savings and Investment?

It is because Savings will always be equal to Investment at all points of income

So we cannot calculate equilibrium point

NCERT Questions

Question 2

What is the difference between ex ante investment and ex post investment?

Other Books

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