When consumer condence falls, in the short run: 0 aggregate demand will shift to the right, increasing equilibrium GDP and price level; but in the long run, the higher price level resulting from increased aggregate demand will increase costs, decreasing aggregate supply and shifting itto the left. 0 aggregate supply will shiftto the right, increasing equilibrium GDP and price level; but in the long run, the higher price level resulting from increased aggregate supply will increase costs, decreasing aggregate demand and shifting it to the left. 0 aggregate supply will shiftto the left, reducing equilibrium GDP and price level; but in the long run,the lower price level resulting from reduced aggregate supply will lower costs, increasing aggregate demand and shifting it to the right. 0 aggregate demand will shift to the left, reducing equilibrium GDP and price level; but in the long run; the lower price level resulting from reduced aggregate demand will lower costs, increasing aggregate supply and shifting it to the right. Everything else equal, which will have a larger effect on aggregate demand and GDP: a $100 million reduction in taxes or a $100 million increase in government spending? 0 The increase in government spendingthe tax cut will cause an initial increase in consumption spending of less than $100 million. 0 The tax cutthe initial increase in consumption spending will be more than $100 million. 0 The impact will be the samethe tax cut will increase consumption spending by $100 million. A government ofcial observes that there has been a longrun increase in the price level but no change in the level of potential output This could have been caused by: O a positive demand shock that increased production in the short run. 0 a negative demand shock that decreased production in the short run. 0 a negative supply shock that decreased production in the short run. 0 a positive supply shock that increased production in the short run