Consider the following 2 statements: 1. If the economy produces full-employment output, an increase in government spending increases output but not the price level. Il. Whenever the aggregate supply curve intersects the aggregate demand curve, the economy is producing at full-employment level of output. 1) I is true, and Il is false. 2) Both I and Il are true. 3) I is false, and Il is true. 4) Both I and Il are false