Question

g As the economy moves toward equilibrium​ expenditure, an unplanned​ ______ in inventories leads firms to​ ______ production.

Answer 1

1. decrease

2. increase

Step-by-step explanation:

Economy equilibrium is a term often used in economics to describe a situation in a given economy, in which the total sum of expenditures is the same or equals to the total sum of supplies or production level in that particular economy.

Hence, as the economy moves toward equilibrium​ expenditure, an unplanned​ DECREASE in inventories leads firms to​ INCREASE production.