Question

Unexpected increases in inventories usually precede A. increases in inflation B. increases in imports C. stagflation D. decreases in production E. decreases in unemployment

Answer 1

Answer:

D. decreases in production

Explanation:

Unexpected increases in inventories usually precede decreases in production.

This situation leads to decreases in production because producers only have a limited ability to store the goods they produce and because not doing so would put them at risk of greater losses should the economic situation not turn around