The Economy Is in Equilibrium,TP = TE,and Real GDP Is

Multiple Choice

The economy is in equilibrium,TP = TE,and Real GDP is $4,555 billion.The MPC is 0.80,the multiplier is operative,and idle resources exist at each expenditure round.Government purchases rise by $10 billion.As a result,the __________ curve shifts __________,inventory levels unexpectedly __________,business firms ___________ the quantity of goods and services they produce,and Real GDP __________ by __________.

A) TE; downward; fall; increase; rises; $10 billion.
B) TP; rightward; fall; decrease; falls; $50 billion
C) TE; upward; fall; increase; rises; $50 billion
D) TE; downward; rise; increase; rises,$50 billion