Question

When the economy is in short-run equilibrium, Question 8 options: there are increases in inventory. there are decreases in inventory. total expenditures equal total production. people want to buy more than will be produced.

Answer 1

Answer: total expenditures equal total production.

Step-by-step explanation:

If an economy is going through a short-term equilibrium, it means that people/ consumers are buying/ demanding the same amount of goods being produced in the market.

Total expenditure shows the amount people spend on goods and services and total production shows the total amount produced. If these two are equal then the situation above holds true as it means that consumers are demanding the same quantity of goods and services produced.