An increase in net exports would lead to an increase aggregate demand but would not lead to an increase in aggregate supply

Of the following, the largest single component of U.S. federal government expenditures is spent on

A) transfers to state and local governments. B) Medicare and Medicaid. C) interest paid on the national debt. D) purchases of goods and services for purposes other than national defense. E) national defense.

In the above figure, if the price is $1.25 per gallon of milk and 5 million gallons are produced and consumed, then the consumer surplus is ________ and the producer surplus is ________

A) $3.125 million; $3.125 million B) $12.5 million; $12.5 million C) $6.25 million; $6.25 million D) None of the above answers are correct.