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Question: the economy is in equilibrium tp te and real...

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The economy is in equilibrium, TP = TE, and Real GDP is $2,000 billion. The MPC is 0.75, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending falls by $10 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 __________.

downward; rise; decrease; falls; $7.5 billion
downward; fall; increase; rises; $40 billion
downward; rise; decrease; falls; $40 billion
upward; rise; decrease; falls; $40 billion
downward; fall; decrease; falls; $7.5 billion
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