Production Decrease

Definition

Production decrease refers to a decline in the total output of goods and services produced by an economy. It occurs when there is a reduction in the quantity or quality of inputs used in production.

Related terms

Aggregate Supply: The total amount of goods and services that all firms in an economy are willing and able to produce at a given price level.

Recession: A significant decline in economic activity characterized by a sustained period of production decrease, high unemployment rates, and low consumer spending.

Supply Shock: An unexpected event that disrupts the normal flow of inputs into production, leading to a sudden change in output levels.