[Am4TIfIsER0ppos]

If you produce N goods now and want to produce N+1 goods but cannot find labor how does that result in producing N-1 goods?

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Who is saying that you still can produce N goods? If you don't have enough workers (anymore).

Having the potential to grow (e.g. orders) doesn't mean you cannot shrink at the same time because you just cannot produce e.g.

[Am4TIfIsER0ppos]

Indeed. "grow" was in one of the parents so I assumed everyone was meaning more leading to my post.