Question: Consider the economy of Belarus. President Lukashenko claims that the coronavirus is a conspiracy and he does not impose any kind of quarantine, lockdown, or social distancing. So the economic activity goes on "normally". The only difference is that workers (implicitly) demand higher wages to show up at work. Using the standard four diagrams (AS/AD model), explain how this policy will play out.

What are the short run & long run dynamics of the four diagrams? Please explain step by step in words & using the diagram.

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