When there are gains from trade, the trading nations would be worse off if no trade took place

In the GDP accounts, investment includes the purchase of newly issued shares of stock

Indicate whether the statement is true or false

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