The economy begins in long-run equilibrium. Then one day, the president appoints a new Fed chair, who is well known for holding the view that inflation is not a major problem for an economy. Note: You will not be graded on any changes you make to the following graph, but you may use it to help you understand the scenario described. Which of the following statements accurately describes what would happen as a result of this news? Check all that apply. People would expect the price level to fall. The nominal wage that workers and firms agree to in their new labor contracts would be higher than it would be otherwise. The profitability of producing goods and services at any given price level would decrease. The short-run aggregate-supply curve would shift to the right. If aggregate demand is held constant, the shift in the aggregate-supply curve will cause the price level to quantity of output produced to