Australian government spending jumps in Q3, adds to GDP

SYDNEY, Nov 30 (Reuters) - Australian government spending surged in the September quarter fuelled by increased stimulus as coronavirus lockdowns hit households and businesses, delivering a much-needed boost to economic growth.

Spending on operational items jumped 3.6% in the third quarter from the previous quarter to an inflation-adjusted AS114.8 billion ($82.01 billion), the Australian Bureau of Statistics reported on Tuesday.

In all, the ABS estimated total public spending added around 0.7 percentage points to third quarter gross domestic product (GDP).

Source: https://www.reuters.com/markets/rates-bonds/australian-government-spending-jumps-q3-adds-gdp-2021-11-30/

Please explain how the economy moves from short-run to long-run. Also support your answer with diagrams of IS-LM and AS-AD.