Suppose that in response to the corporate friendly policies being enacted by Congress there is a strengthening of union power in the United States resulting in a rise in wages. (a) Illustrate the short-run effect of rising union power using the AS-AD Model. Assume that the economy is initially at its long-run potential output and that the SRAS curve is positively sloped. Be sure to correctly label the axes and curves. Label the initial equilibrium as Point A and the new short-run equilibrium as Point B. (b) Based on your graph in Part (a) what happens to equilibrium output and prices in the short- run? (c) Illustrate the short-run effect of rising union power on the Phillips Curve. Label the initial unemployment-inflation combination as Point A and the new short-run unemployment-inflation combination as Point B