If total production (TP)is greater than total expenditures (TE),it follows that
A) producers have produced more than individuals buy.
B) optimum inventory levels rise.
C) firms have underproduced.
D) actual inventory levels unexpectedly rise.
E) a and d

Question

Quizplus · Accepted Answer

When total production exceeds total expenditures, it implies that the amount produced is more than what is being bought or consumed, leading to an increase in actual inventory levels as unsold goods accumulate.

If Total Production (TP)is Greater Than Total Expenditures (TE),it Follows