Total production
A) always equals total expenditures.
B) equals total expenditures in equilibrium.
C) is always greater than total expenditures.
D) is always less than total expenditures.

Question

Quizplus · Accepted Answer

In equilibrium, total production equals total expenditures because all goods and services produced are being purchased by consumers, businesses, and the government. However, in situations where there are imbalances such as excess production (overproduction) or insufficient demand (underproduction), total production may be greater or less than total expenditures, respectively. Therefore, options A, C, and D are not always true.

Total Production