When total production is less than total expenditures, ____ is produced than households want to buy, which leads to

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When total production is less than total expenditures, ____ is produced than households want to buy, which leads to

____ in inventory, which signals firms that they have __________. Group of answer choices less; decreases; underproduced more; increases; overproduced less; increases; underproduced more; decreases; overproduced

Business

1 answer:

gtnhenbr [62] · Answer 1 · 2023-10-06T21:54:33+03:00

When total production is greater than total expenditures, More is produced than households want to buy, which leads to increase in inventory, which signals firms that they have overproduced, which causes firms to cut back production.

What is total production?

The volume of total production refers to the output manufactured by the enterprise or its establishment during the calendar year. It comprises sold production and production intended to be sold, output produced for stock as well as output that either is being, will be or has been reprocessed by the enterprise.

What is total expenditure?

The sum of the price paid for one or more products or services multiplied by the amount of each item purchased.

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When total production is less than total expenditures, __________ is produced than households want to buy, which leads to ______

When total production is less than total expenditures, ____ is produced than households want to buy, which leads to