In the aggregate demand–output model, if aggregate demand is less than GDP, then:Group of answer choicesGDP decreases.inventory is depleted.inventory is unchanged.employment increases.

In the aggregate demand-output model, if aggregate demand is less than GDP, then inventory increases.

Here's why:

1. Aggregate demand is the total demand for all goods and services in an economy.

2. GDP (Gross Domestic Product) is the total value of all goods and services produced in an economy.

3. If aggregate demand is less than GDP, it means that the goods and services produced (GDP) are more than what is being demanded.

4. The excess goods and services that are produced but not sold are stored as inventory.

5. Therefore, when aggregate demand is less than GDP, inventory increases.

In the aggregate demand-output model, if aggregate demand is less than GDP, then inventory increases.

Here's why:

1. Aggregate demand is the total demand for all goods and services within an economy.

2. GDP (Gross Domestic Product) is the total value of all goods and services produced within an economy.

3. If aggregate demand is less than GDP, it means that the goods and services produced (GDP) are more than what is being demanded.

4. The excess goods and services that are not sold will go into inventory, thus increasing the inventory.

5. This situation is not ideal for an economy because it indicates that resources are being wasted on producing goods and services that are not needed. This could lead to a decrease in production and potentially a decrease in employment.