Refer to the diagram given below. Assume that the nominal wages of workers in an economy are initially set on the basis of the price level P₂ and that the economy is initially operating at the full-employment level of output Q_f.In the long run, an increase in the price level from P₂ to P₃ will: A)increase the real output from Q_f to Q₂. B)shift the aggregate supply curve from AS₂ to AS₁. C)decrease the real output from Q₂ to Q₁. D)not change the level of real output.

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The Answer of Refer to the diagram given below. Assume that the nominal wages of workers in an economy are initially set on the basis of the price level P₂ and that the economy is initially operating at the full-employment level of output Q_f.In the long run, an increase in the price level from P₂ to P₃ will: A)increase the real output from Q_f to Q₂. B)shift the aggregate supply curve from AS₂ to AS₁. C)decrease the real output from Q₂ to Q₁. D)not change the level of real output.

Refer to the Diagram Given Below