Consumers don't always have to pay the maximum price they are willing to pay

In general, one of the results of free trade is that the owners of domestically:

A. scarce factors of production lose due to increased competition. B. abundant factors of production lose from increased demand. C. scarce factors of production win due to increased consumers. D. abundant factors of production win from decreased demand.

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