Answer
a) Please see the first graph. The short run aggregate supply curve is labeled $AS_{HR}$, and the long run aggregate supply curve is labeled $AS_{LR}$. The aggregate demand curve is labeled $AD$. The intersecting point of all three lines is labeled $A$.
Work Step by Step
b) Please see the second graph. The new equilibrium is labeled $B$.
c) Please see the second graph. The long-run equilibrium is labeled $C$ and is not affected by the price level. That is why the output doesn't change.
d) Nominal wages at points $A$ and $B$ are the same (since we are in the short run), and nominal wages at point $A$ are less than nominal wages at point $C$ (since point $C$ is looking at the long run and wages haven't adjusted).
e) Nominal wages at points $A$ are greater than nominal wages at point $B$ (since the increased money supply has increased the overall price level and decreased the purchasing power), and nominal wages at point $A$ are the same as nominal wages at point $C$ (since point $C$ has adjusted to the higher price level).
f) Yes, this analysis is consistent. In the long run, an increased money supply causes the nominal wages to increase.
