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The Economy Is in Equilibrium,TP = TE

Question 171

Multiple Choice

The economy is in equilibrium,TP = TE.Then,net exports fall.As a result,the __________ curve shifts __________,inventory levels unexpectedly __________,and business firms __________ the quantity of good and services they produce.


A) TE; upward; rise; increase
B) TP; rightward; rise; decrease
C) TE; downward; rise; decrease
D) TE; downward; rise; increase
E) none of the above

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