If the United Auto Workers successfully negotiate higher wages,this would cause the AD curve to shift to the left.

Question

Quizplus · Accepted Answer

Negotiating higher wages with the United Auto Workers would increase the cost of production for auto manufacturers, which would lead to higher prices for cars. This would cause a decrease in the quantity demanded for automobiles, not a shift in aggregate demand. Therefore, the AD curve would not shift to the left.

If the United Auto Workers Successfully Negotiate Higher Wages,this Would