Question

If an unintended increase in business inventories occurs, Group of answer choices we can expect businesses to increase the level of production. we can expect businesses to lower the level of production. aggregate expenditures must exceed the domestic output. we can expect aggregate production to be unaffected.

Answer 1

If an unintended increase in business inventories occurs: B. we can expect businesses to lower the level of production.

What is an inventory?

An inventory can be defined as the raw materials that are used by a business firm (producer) for the manufacturing of finished goods, as well as goods that are in various stages to be made ready for sale to consumers.

In business management, we should expect businesses to lower the level of production when an unintended increase in business inventories occurs.

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