A person who can produce more of a good than another person is said to possess a comparative advantage

Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap.  

A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary

Good weather in wheat-producing regions of the world increased the wheat crop. As a result, wheat prices decreased worldwide. Which of the following statements best explains the situation?

a. The supply of wheat increased b. The demand for wheat decreased c. The demand for wheat decreased and the supply of wheat decreased d. The demand for wheat increased and the supply of wheat increased