Starting at "long run equilibrium" what will happen if the Government increases spending Question 24 options: A. in the short run, the AD curve will shift to the right the economy will produce above its natural level and unemployment will fall; in the long run the AS curve will shift to the right, increasing the "price level" and returning the economy to its "natural" level of output and employment B. in the short run, the AD curve will shift to the left the economy will produce above its natural level and unemployment will fall; in the long run the AS curve will shift to the left, increasing the "price level" and returning the economy to its "natural" level of output and employment C. in the short run, the AD curve will shift to the right the economy will produce above its natural level and unemployment will fall; in the long run the AS curve will shift to the left, increasing the "price level" and returning the economy to its "natural" level of output and employment D. in the short run, the AD curve will shift to the left the economy will produce above its natural level and unemployment will fall; in the long run the AS curve will shift to the right, increasing the "price level" and returning the economy to its "natural" level of output and employment