From the Short Run to the Long RunIn panel (a), the initial short-run aggregate supply curve is SRAS₁. At the aggregate price level, P₁, the quantity of aggregate output supplied, Y₁, exceeds potential output, Y_P. Eventually, low unemployment will cause nominal wages to rise, leading to a leftward shift of the short-run aggregate supply curve from SRAS₁ to SRAS₂. In panel (b), the reverse happens: at the aggregate price level, P₁, the quantity of aggregate output supplied is less than potential output. High unemployment eventually leads to a fall in nominal wages over time and a rightward shift of the short-run aggregate supply curve.