Consider the Basic AD/AS Model

Multiple Choice

Consider the basic AD/AS model.If major labour unions succeed in increasing wages across the economy,the AS curve will shift

A) downward (to the right) ,reducing the price level.
B) downward (to the right) and then return immediately to its original position.
C) upward (to the left) and then return immediately to its original position.
D) upward (to the left) ,increasing the price level.
E) None of the above; there will no effect on the AS curve.