Consider an economy where most workers are union members, and unions have successfully negotiated large wage boosts. At the same time, economic conditions suddenly deteriorated abroad, reducing real GDP and disposable income in other countries of the world. a) Using the basic (static) aggregate demand - aggregate supply (AD-AS) diagram, starting from a long-run equilibrium, discuss the likely short-run and long-run impacts of these events on real GDP and the price level of this economy. b) Are there any suitable policy options that can quickly bring the economy back to the long-run equilibrium? Use your diagram in part (a) to explain how these policies may work