Imagine a country where a single, powerful union represents all workers in the manufacturing sector, which constitutes a large portion of the national economy. The union successfully negotiates a substantial, economy-wide wage increase for all its members. Beyond the immediate pay raise for workers, which of the following statements best analyzes the most likely unintended consequence for the broader economy?
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A powerful, economy-wide labor union successfully negotiates a significant wage increase for a large portion of the nation's workforce. Arrange the following economic events in the most likely chronological order to show the ripple effects throughout the economy.