Suppose the minimum wage were increased sharply

In short run, when minimum wages rise suddenly, the profit margins will fall, which will discourage the supply, hence aggregate output will decrease resulting in a disequilibrium in the in the price level in an economy but in long run this increase in wage will result in increased consumption which will push the aggregate demand to go up which will also encourage the suppliers to produce more resultingly the aggregate supply will increase and equilibrium will settle on an increased price level then the previous one.