What happens to the level of national income when aggregate supply falls short of aggregate demand?

When aggregate supply falls short of aggregate demand, it typically leads to an increase in prices and a decrease in the level of national income. This is because when there is not enough supply to meet the demand for goods and services, prices tend to rise as consumers compete for the limited supply. As prices increase, consumers may not be able to afford as many goods and services, leading to a decrease in overall spending and a decrease in national income. Additionally, businesses may not be able to produce as much due to the limited supply of inputs, further contributing to a decrease in national income.