Question

During periods of economic growth, an increase in consumption causes companies to make_____ goods and services.

Answer 1

The answer is MORE

More demand from customers by consumption causes companies to make more supply in order to get in equilibrium

Answer 2

Answer:

MORE

Explanation:

If an economy is in a period of growth, rising demand will make firms expect more sales and profit. This expectation of higher profits will make firms produce more products. If the economy stays warm, firms' strategies will work. If the economy slows down, firms' inventories will increase, as demand will not be equal to that planned by firms.