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

Name: In the aggregate expenditures model, if aggregate expenditures (AE)are less than GDP, then GDP increases.
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If aggregate expenditures are less than GDP, it indicates that the economy is producing more than is being spent, leading to an accumulation of unsold goods. This typically results in a decrease in GDP as production is scaled back to match the lower level of spending.

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