In the long run, input demand becomes more

If oil prices fall at the same time that the federal government increases its purchases, in the short run

A) aggregate output and the price level will both increase. B) aggregate output will increase, but the price level will fall. C) aggregate output and the price level will both fall. D) aggregate output will increase, but the price level may either increase or decrease.

The price of pie increases. Some people who purchased pie before the price increase no longer purchase pie. This is

A) a positive externality. B) a negative externality. C) a positive externality for some consumers and a negative externality for others. D) not an externality.