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White raven [17]
3 years ago
15

The economy is in equilibrium, TP = TE. Then, net exports fall. As a result, the __________ curve shifts __________, inventory l

evels unexpectedly __________, and business firms __________ the quantity of good and services they produce.
Business
1 answer:
harkovskaia [24]3 years ago
8 0

Answer:

1. The Total Expenditure curve shifts Upward

2. Falls

3. Increase

Explanation:

Economic equilibrium is a state where economic forces are balanced. Total Expenditure curve shifts upward.

There will be a fall in inventories level

Supply and demand for goods are equal which is equilibrium in the market. Business firms will increase the quantity of goods and services they produce.

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