An economy begins in a state where wage contracts have been set based on a mutually agreed-upon expectation for the rate of price increases over the next year. Partway through the year, a majority of firms independently decide to raise their prices by a larger amount than was expected in order to increase their profit margins. Arrange the following events in the correct logical and chronological order that results from the firms' actions.
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An economy begins in a state where wage contracts have been set based on a mutually agreed-upon expectation for the rate of price increases over the next year. Partway through the year, a majority of firms independently decide to raise their prices by a larger amount than was expected in order to increase their profit margins. Arrange the following events in the correct logical and chronological order that results from the firms' actions.
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