In the short run, the increase in foreign spending on domestic goods due to expansion abroad shifts the aggregate .............(demand/supply) curve to the............(left/right) causing the price level to............(rise above/fall below) the price level people expected, and the quantity of output to ..........(rise above/fall below) potential output. The economic prosperity abroad will cause the unemployment rate to ...........(fall below/rise above) the natural rate of unemployment in the short run.

240 SRAS 200 AD 180 SRAS 120 PRICE LEVEL 80 AD 40 100 200 300 400 500 600 REAL GDP (Billions of dollars)