Question

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

Answer 1

Answer:

The correct order of answer is: more, increases, overproduced

Explanation:

A situation in which the production level is higher than the population's consumption level is contemplated to be an overstock. An overstock happens when you have products that have not been sold due to the fact that the amount is higher than the project demanded.

This can only reduce when organisations agree to offer the same quantity which is needed in the market.

Answer 2

Answer:

The correct answer is a) more, increase, overproduced.

Explanation:

Any production higher than the population's consumption level should be considered as excess inventory, which can only decrease when companies decide to reduce and offer the same quantity required by the market. In cases where consumer products that have a low maturity level are produced, these products may be lost, as well as technology goods that tend to depreciate as improvements are made to new products.