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Solve please Now, suppose prices remain higher than expected. As a result, in the next round of labor negotiations, unions demand and obtain higher wages

Solve please

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Now, suppose prices remain higher than expected. As a result, in the next round of labor negotiations, unions demand and obtain higher wages for their members. The following graph shows the potential output for this economy as well as the same initial short run aggregate supply curve as in the first graph Shift one or both of these lines to illustrate how the economy adjusts to a new long run equilibrium. 180 150 SRAS Potential Output 120 SRAS PRICE LEVEL 90 60 30 Potential Output 9 12 15 18 REAL GDP (Trillions of dollars) Grade It Now Save & Continue Continue without saving F2 F3 F5 F6 44 F7 F8 F9 @ # % 2 3 4 5 7 8 O O W E R T Y U O S D F G H K Z X C V B N M <

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