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
a. downward; rise; decrease; falls; $7.5 billion
b. downward; fall; increase; rises; $40 billion
c. downward; rise; decrease; falls; $40 billion
d. upward; rise; decrease; falls; $40 billion
e. downward; fall; decrease; falls; $7.5 billion
Answers: 1
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