The following graph shows the economy In long-run equilibrium at the expected price level of 120 and the natural level of output of $600 billion. Suppose the government increases spending on building and repairing highways, bridges, and ports. Shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve to show the short-run Impact of the increase in government spending. ? 240 200 AS AD 160 AS PRICE LEVEL 120 8 AD 0 200 400 600 800 1000 1200 OUTPUT (Billions of dollars) In the short run, the increase in government spending on infrastructure causes the price level to_ the price level people expected and the quantity of output to the natural level of output. The increase in government spending will cause the unemployment rate to the natural rate of unemployment in the short run. Again, the following graph shows the economy In long-run equilibrium at the expected price level of 120 and the natural level of output of $600 billion, before the Increase In government spending on Infrastructure. During the transition from the short run to the long run, price-level expectations will and the curve will shift to the_ MacBook Pro