There can be such a thing as too much output in an economy. When an economy produces more goods and services than what is generally demanded, involuntary inventories build up as sellers struggle to sell their stock. This leads sellers to lower prices in order to clear out their excess inventories.

1. Is there ever such a thing as too much output?
Solution
In Macroeconomics, the phrase "too much output" is used to indicate a situation where the
economy is producing more goods and services than what is demanded in general. In such a
situation, involuntary inventories build up and it leads sellers to cut down the prices to clear their
stock.