The following graph shows the economy in long-run equilibrium at the expected price level of 120 and the natural level of output of $300 billion. Suppose a stock market boom increases household wealth and causes consumers to spend more. 240 200 AS 160 PRICE LEVEL 120 80 AD 40 200 400 600 800 1000 1200 OUTPUT (Billions of dollars) In the short run, the increase in consumption spending associated with the stock market expansion causes the price level to_ the price level people expected and the quantity of output to_the natural level of output. The stock market boom will cause the unemployment rate to_ the natural rate of unemployment in the short run. A rise above; fall below; rise above fall below; fall below; rise above rise above; rise above; fall below fall below; rise above; fall below