Refer to the above figure. Which point or points represent(s) a long-run equilibrium?

Which of the following activities undertaken by a competitive firm can improve its public relations?

a. Investing in assets that cannot easily be redeployed to other uses or locations. b. Donating a portion of its annual profit to hurricane affected families c. Providing good quality products at a high price. d. Investing in in-house research

Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower