Solve

Aggregate Demand and Aggregate Supply - End of Chapter Problem Suppose that in Wageland, all workers sign annual wage contracts each year on January 1. No matter what happens to the prices millan Lea of final goods and services during the year, all workers earn the wage specified in their annual contract. This year, prices of final goods and services fall unexpectedly after the contracts are signed. 9Macmi ga. In the accompanying graph, illustrate what happens in the short run to the quantity of aggregate output supplied due to the fall in prices by shifting the SRAS curve and/or the point labeled E. LRAS SRAS E Inflation Rate Real GDP