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

Multiple Choice

The economy is in equilibrium,TP = TE,and Real GDP is $4,000 billion.The MPC is 0.60,the multiplier is operative,and idle resources exist at each expenditure round.Autonomous investment spending rises by $13 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,rise,increase,rises,$32.5 billion
B) TE,upward,fall,increase,rises,$101.5 billion
C) TE,upward,fall,decrease,rises,$32.5 billion
D) TE,upward,fall,increase,rises,$32.5 billion
E) TP,upward,fall,increase,rises,$101.5 billion