If Declining Labor Union Membership Causes Workers to Lose Bargaining

Multiple Choice

If declining labor union membership causes workers to lose bargaining power, resulting in lower wages, production costs will:

A) increase, and the SRAS curve will shift to the left, decreasing equilibrium GDP and the aggregate price level.
B) increase, and the SRAS curve will shift to the left, decreasing equilibrium GDP and the aggregate price level
C) fall, there will be a downward movement along the SRAS curve, equilibrium GDP will increase, and the aggregate price level will fall
D) fall, there will be a downward movement along the SRAS curve, equilibrium GDP will increase, and the aggregate price level will fall.
E) not change, and the AD curve will shift to the right, increasing equilibrium GDP and the aggregate price level
F) not change, and the AD curve will shift to the right, increasing equilibrium GDP and the aggregate price level.
G) fall, and the SRAS curve will shift to the right, increasing equilibrium GDP and lowering the aggregate price level.
H) fall, and the SRAS curve will shift to the right, increasing equilibrium GDP and lowering the aggregate price level