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

Multiple Choice

The economy is in equilibrium,TP = TE,and Real GDP is $500 billion.The MPC is 0.95,the multiplier is operative,and idle resources exist at each expenditure round.Autonomous investment spending rises by $4 billion.As a result,the TE curve shifts __________,inventory levels unexpectedly __________,business firms __________ the quantity of goods and services they produce,and Real GDP __________ by __________.

A) upward; fall; increase; rises; $3.8 billion
B) upward; fall; increase; rises; $8 billion
C) downward; rise; decrease; falls; $80 billion
D) upward; fall; increase; rises; $80 billion
E) downward; fall; decrease; falls; $3.8 billion