Suppose an economy has flexible prices, but fixed money wages in the short run. The economy is at full employment with fixed money wages W = W₁and price level P = P₁, such that W₁/P₁= (W/P)*, the market-clearing real wage. Suppose there is a permanent decrease in aggregate demand. Show graphically what will happen to output, employment, prices and wages in the short run. In the same graph, show what will happen to output, employment, prices and wages in the long run.