Long Run: Draw a long 11m aggregate supply curve Draw an aggregate demand curve and label it ADI Label the equilibrium price label and GDP, Show in a diagram how the effects of expansionary Fiscal Policy will affect the price level and GDP using long run ADIAS analysis. What can be said about the trade off between ination and unemployment in this model? Government Budgets and Debt. How are these two terms related? Suppose the Government has a balanced budget. Explain how the budget will be affected by an expansionary policy using government expenditures. Suppose the Government has a balanced budget. Explain how the budget will be affected by an expansionary policy using tax cuts