Figure 5: Aggregate Demand and Supply For this question, refer to figure 5. Suppose aggregate demand and aggregate supply are initially given by AD1 and SRASl. (a) Suppose that because of a recent history of rapidly rising prices, workers are demanding higher wages, causing ERAS to shift, so that ERAS shifts to SHAH} How should the Fed change their target Federal Funds rate if they wish to close the gap that would create?1 3 points. (1)) If the Fed does as you reccornmend in the previous part, what will happen to the price level? Do you think workers will continue to demand higher wages, or not? 2 points