In an Economy, if planned spending is more than planned output, it implies that ex-ante aggregate demand is more than ex-ante aggregate supply (AD > AS). Planned Spending represents planned aggregate expenditure and planned output represents planned aggregate supply. Effect on output: To meet the increased demand in the economy, producers will plan to increase the production. So, output will rise in the economy. Effect on Employment: To increase the output, producers will apply additional resources (labour). So, employment will increase in the economy. Effect on Income: Increase in employment level will lead to more job opportunities. It will increase the income level in the economy.