Inventory levels unexpectedly fall and as a result firms increase the quantity of goods and services they produce. Which of the following is consistent with these two occurrences?
A) TP is greater than TE.
B) TP is less than TE.
C) TE is equal to TP minus the rise in inventories above the optimum inventory level.
D) TP is equal to TE.
E) b and c
B
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