Experience the power of community-driven knowledge on IDNLearn.com. Find reliable solutions to your questions quickly and accurately with help from our dedicated community of experts.
What happens in the economy if total production (TP) is greater than total expenditures (TE)?
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.
Your participation is crucial to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Your search for answers ends at IDNLearn.com. Thanks for visiting, and we look forward to helping you again soon.
