0.2 (15 points) Shift in AS curves due to revision of labor contracts Upon expiry of the existing contracts, suppose employers and employees decide to
0.2 (15 points) Shift in AS curves due to revision of labor contracts Upon expiry of the existing contracts, suppose employers and employees decide to revise the nominal wage (W) upward under a new set of contracts because they expect a rise in the future price level (P9). Explain how it would affect aggregate supply in the short run (SRAS) and in the long run (LRAS)
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