Suppose the economy is currently in short-run equilibrium at point L. In this case, the economy is producing at an output level above its potential output. At current prices and wage levels, real wages are above what firms and workers expected when they agreed on wage contracts. In the long run, if the price level and the nominal wage are both flexible, wages will rise, which will cause the SRAS curve to shift to the right. Assuming the other two curves do not change, the economy will reach a new equilibrium at an output of $5 trillion and a price level of 60.