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Use the Following Diagram to Answer the Following Questions

question 21

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Use the following diagram to answer the following questions.
Use the following diagram to answer the following questions.    -Refer to Diagram 14-2. In the above diagram, which of the following illustrates inflation caused by the activity of labor unions? A)  an shift in aggregate demand from AD₁ to AD₂ due to the increased purchasing power of union members. B)  a shift in aggregate demand from AD₁ to AD₂ due to the increased quality of union products. C)  a shift in aggregate supply from AS₂ to AS₁ due to the restriction of employment opportunities by unions. D)  a shift in aggregate supply from AS₁ to AS₂ due to union activity which forces wages up.
-Refer to Diagram 14-2. In the above diagram, which of the following illustrates inflation caused by the activity of labor unions?


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