Which would cause UK firms to think about cutting back production?

Question

Quizplus · Accepted Answer

If there is a build up of stock levels, firms may find that they have produced more than they can sell, which would cause them to cut back production in order to avoid excess inventory. A fall in real wages may not necessarily lead to production cuts as it could lead to lower costs for firms. Improvement in the EU Area 17 countries or ease of credit controls may actually lead to increased production rather than cuts.

Which Would Cause UK Firms to Think About Cutting Back