8. Comparing total expenditures and total production The following graph shows total production (TP) and total expenditures (TE) for a hypothetical economy. Suppose Real GDP is $550 billion. TOTAL EXPENDITURE (Billions of dollars) 700 675 650 625 600 575 550 525 500 500 525 550 Y-Intercept: 300 575 600 625 650 675 700 REAL GDP (Billions of dollars) decrease do not change increase (TP = Real GDP) TE ? If Real GDP is $550 billion, inventories increase the firms raise ' production, and Real GDP decreases to $500