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Figure: AD-AS
-(Figure: AD-AS) Look at the figure AD-AS. Suppose the economy starts at E₁ and moves to E₂, where AD₂intersects SRAS_1. SRAS₁willshift to SRAS₂because:

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Use the following to answer questions :
Figure: AD-AS

-(Figure: AD-AS) Look at the figure AD-AS. Suppose the economy starts at E₁ and moves to E₂, where AD₂intersects SRAS_1. SRAS₁willshift to SRAS₂because:

Quizplus · Accepted Answer

Nominal wages tend to rise in the long run as the economy adjusts to higher levels of demand, causing the short-run aggregate supply curve to shift leftward from SRAS1 to SRAS2.

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