What changes will take place to bring an economy in equilibrium if

What changes will take place to bring an economy in equilibrium if.
(i) planned savings are greater than planned investment.
(ii) planned savings are less than planned investment.

The situation when S > I or when S < I are explained with the help of following figure:
In this diagram, equilibrium is struck at point E, when S = I. Equilibrium level of income = OY.
Let us consider a situation when S > I. It happens at point El. It is a situation when AD < AS.

In such a situation, the following changes will occur:
(i) Stocks of the producers would be in excess of the desired limit.
(ii) Profits will start shrinking.
(iii) Desired level of output for the subsequent year will
face a cut.
(iv) Levels of income and employment will tend to shrink to the point where 5 = I, corresponding to point E in the diagram.
Thus, the economy will come back to the state of equilibrium.
Now, consider a situation when S < I. It happens at point {{E}_{2}}. It is a situation when AD>AS.
In such a situation, the following changes will occur:
(i) Existing stocks of the producers will not be enough to cope with the level of AD.
(ii) Profits will not be maximum because the desired level of stock is not available.
(iii) Producers will plan higher level of output for the subsequent years.
(iv) Level of output and employment will rise or drive the economy to the point of equilibrium at point E.