The table below contains hypothetical international balance-of-payments data for the United States. All figures are in billions. Compute with the appropriate sign (+ or ?) and enter in the table the six missing items. What was the condition of the balance of payments in the United States?

A tariff imposed by the United States on Japanese cars ________ the price of cars in the United States and ________ the quantity of Japanese cars imported into the United States

A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases

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