U.S. consumers spent slightly more last month but earned less for the first time in nearly two years. The new data on spending and incomes suggest Americans tapped their savings to cope with steep gas prices and a weaker economy. Americans saved less money. The savings rate fell to its lowest level since late 2009. A decline in income growth could slow the economy, if it causes households to cut back.
Explain how a fall in consumer expenditure influences the quantity of real GDP demanded and aggregate demand.