In the long run economic adjustment process, an economy returns to full employment through shifts in the short-run aggregate supply (SRAS) curve due to changes in __________, which can include nominal wages and input costs.

In the long run economic adjustment process, an economy can return to full employment when there are shifts in the short-run aggregate supply (SRAS) curve. This happens because changes in nominal wages and input costs can affect how much goods and services businesses are willing to produce. For example, if wages increase, businesses might find it more expensive to hire workers, which could lead to a decrease in production. As production falls, the overall supply in the economy shifts, leading to changes in prices and eventually an adjustment back to full employment. Over time, these shifts help balance the economy, allowing it to stabilize at a point where all resources, including labor, are fully utilized.