One of the possible consequences of the expenditure schedule lying below the level of full employment GDP is

Question

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If the expenditure schedule lies below the level of full employment GDP, it means that there is not enough demand in the economy to purchase all the goods and services that are being produced. As a result, businesses are likely to experience a decrease in sales, leading to a decrease in profits and ultimately, a decrease in employment. Therefore, the consequence of the expenditure schedule lying below the level of full employment GDP is unemployment.

One of the Possible Consequences of the Expenditure Schedule Lying