Cost-push inflation occurs because of a shift to the
A) right of the short-run aggregate supply curve.
B) left of the short-run aggregate supply curve.
C) right of the aggregate demand curve.
D) left of the aggregate demand curve.

Question

Quizplus · Accepted Answer

Cost-push inflation is caused by a decrease in aggregate supply, represented by a leftward shift of the short-run aggregate supply curve, due to increases in the costs of production.

Cost-Push Inflation Occurs Because of a Shift to the