On Canada Day, July 1, 2021, the Canadian government is planning to announce a two-year $5 billion infrastructure program of rebuilding the Trans-Canada highway.

a) As an economist, describe and explain how this would be represented with our AD and AS model, and how it would affect the price level, unemployment, and real income, Y, in the SHORT RUN.

b) As an economist, would you want to know whether the economy is at or below potential income level?Explain for the LONG RUN.