In the aggregate expenditures model, if aggregate expenditures (AE)are less than GDP, then GDP decreases.

Name: In the aggregate expenditures model, if aggregate expenditures (AE)are less than GDP, then GDP decreases.
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When aggregate expenditures are less than GDP, it indicates that the economy is producing more goods and services than are being purchased, leading to an accumulation of unsold inventory. This typically results in a decrease in production and GDP as businesses adjust to the lower demand.

In the Aggregate Expenditures Model, If Aggregate Expenditures (AE)are Less