Suppose that laws are passed banning labor unions and that resulting lower labor costs are passed along to consumers in the form of lower prices. Assume that the U.S. economy was in long-run equilibrium before this event began. a. Use the aggregate demand-aggregate supply model to illustrate graphically the short-run and long-run impact of this decline in prices. b. If the Federal Reserve attempted to offset this deviation from the natural level of output in the short run, should the money supply be increased or decreased?