The Adjustment to Equilibrium in the Keynesian Cross If firms were producing at level Y₁, then planned expenditure PE₁ would fall short of production, and firms would accumulate inventories. This inventory accumulation would induce firms to reduce production. Similarly, if firms were producing at level Y₂, then planned expenditure PE₂ would exceed production, and firms would run down their inventories. This fall in inventories would induce firms to raise production. In both cases, the firms’ decisions drive the economy toward equilibrium.