c) An increase in female labor force participation causes an increase in short run and long run aggregate supply. Suppose the economy is initially in a long run steady state. In the space below, show how output and prices are affected in the short run and the long run. Prices Output Short Run: Long Run: d) Suppose a change in international strategic priorities reduces military spending and permanently reduces aggregate demand. Suppose the economy is initially in a long run steady state. In the space below, show how output and prices are affected in the short run and the long run. Prices Output Short Run: Long Run