What happens in the economy if total production (TP) is greater than total expenditures (TE)?

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03-01-2022
Social Studies

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What happens in the economy if total production (TP) is greater than total expenditures (TE)?

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The following lines are ______ 4x + 2y = 10 y = -2x + 15

febinfathima70 febinfathima70 · Answer 1 · 2022-01-03T01:30:46-05:00

febinfathima70 febinfathima70

03-01-2022

Answer:

When the total production exceeds the total expenditure, it suggests overproduction in the economy, which causes the inventories of producers to rise. As a result, the firms reduce their production, which, in turn, reduces the real GDP.

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