Answer:
SRAS stands for Short-Run Aggregate Supply, which represents the total output that firms are willing and able to produce at a given price level in the short run. When labor unions are successful in organizing and negotiating higher wages and benefits, this increases the cost of labor for firms, which can lead to a leftward shift in the SRAS curve.
As the cost of labor increases, firms may reduce their output in order to maintain their profit margins, which can cause a decrease in the aggregate supply of goods and services in the short run. This leftward shift in the SRAS curve represents a decrease in the total output that firms are willing and able to produce at each price level.
In the short run, this can lead to an increase in the price level, as the decrease in supply may lead to higher prices. However, over time, firms may adjust to the higher costs of labor by investing in technology and capital, which can increase productivity and shift the SRAS curve back to the right. Therefore, the impact of labor unions on SRAS can be temporary and may depend on other factors such as technological advancements and market competition.