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Macroeconomics help?

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What is the macroeconomic consequence if firms accumulate large amounts of unplanned inventory at the beginning of a recession?

Question on my Macroeconomics HW. I always give best answer!

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  1. recession less sales piling up of inventory if prices r sticy, oe if prices rflexil it's solved ese reession stats ad might land up in depression if demand is not increased i.e. interst raes et., in. is all sme, by assumtion consumpin exp. depens largely on currnt income........


  2. They cannot clear inventory (excess supply) and they are driven to drop prices. They then lose profit, and stock shares go down, impacting the economy even further.
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