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19) Draw an economy in long run equilibrium. b) Suppose that nominal wages increase. Which curve will shift as a result of the shock and in which direction? c) Illustrate the shift on your graph above. d) Explain what happens to Y, P, and the unemployment rate in the short- run. e) State whether the economy is at a full-employment equilibrium, below full-employment equilibrium, or above full-employment equilibrium after the shock. f) State whether the unemployment rate is above or below the NRU after the shock. g) State whether the economy has an expansionary gap or a contractionary gap after the shock. h) If applicable, state whether the economy experiences cost-push inflation or demand-pull inflation. i) If the economy self-corrects in the long-run, which curve will shift and in what direction? Illustrate the shift on your graph above. j) Using the flow chart, explain the long run adjustment process