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If total production is greater than total expenditures, then business firms???
a. have underproduced.
b. will step up production.
c. will lower production.
d. will experience decreases in inventory.
e. a and b
How do YOU define "production", "expenditures" and "Business firms"?
production seems fairly simple and should be the total value of produced goods
Expenditures usually means the total of expenses, or costs incurred
Business firms? Do you mean "just business"? or how do "business firms" differ from regular businesses?
I ask because none of the above are true with these definitions.