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3. The short nin and long run sepp on in the price level The following graph represents the aggregate supply (AS) curve based on an

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3. The short nin and long run sepp on in the price level The following graph represents the aggregate supply (AS) curve based on an expected anice level of 180. The economy's potential GOP level is 45 billion. Major uniont across the country hong noon nooontly negotiated three your ways contracts with smolovers. The ways contracts are based on an expected preelevel of 180. out to be 141 Show the Shere run efect of the unexpectedly bagh price level by dropping the curve of moving the paint to the aspropnate politan. Note: To move the curve, pelect and drag any part of the sept the point To move the point, colect and drag the pant along the curve. H you want to move bath, trot m pont. The curve and point wil snap into position, an f you try'to move one of them and it snaps back to its anginalocation, just try again and drag it a little farther. 380 -0- FEAL SOP Trainee of Jugs They higher than expected price level county Inmate som motherthe s ated on each writ of cutout they produce, and. the producionhere at the same time, the real value of wages and otherresource prices is workers and toms expected when they signed long term canapes, As a result, the economy as a whole produces at a level potential GOP, and unemployment is Aulow er about Now, sophie prices remain higher than mopeded. An a renot, is the restround of leber negotiations, unions demand and obtain higher wages for their members. The following graph shows the peteris off her his coremy as well as the same initial aggregate supply oures as in the Show the long -run effect of the labor nepontoons by dappy the ether the againace supply (45) carve or che poterciel GOP (POOP) curve to the Forverite position Note: Select and trap one or both of the arees to the desired position. Curves wilsnap rite pastion. se if poutry to moves curve and it says back to it's orignal portion, junt day ka little father PRICE LEVEL

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