The aggregate demand curve and aggregate supply curve intersect to provide equilibrium levels in the macro economy. As the aggregate demand curve shifts, so too does the "macro-economic equilibrium levels", and they move through 3 well known phases; and provide a key to macro economic activity.

If the Government wanted to stimulate the economy and used expansionary fiscal policy (e.g. Increased Government spending), what expected effects would this have on both GDP levels & price levels (CPI) in each of these three well known phases?