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.  

If oranges were found to cure cancer,

A) the equilibrium price of apples would likely fall. B) the equilibrium price of oranges would likely increase in the near term. C) the equilibrium quantity of oranges would likely increase. D) All of the above.

The three components of personal consumption expenditures are

a. durable goods, nondurable goods, and services b. durable goods, food, and housing c. durable goods, nondurable goods, and housing d. durable goods, services, and food e. durable goods, services, and transportation