If inflation increases, this could be illustrated as a:
A)Rightward shift of the long-run aggregate supply curve
B)Leftward shift of the long-run aggregate supply curve
C)Rightward shift of the short-run aggregate supply curve
D)Movement down along the short-run aggregate supply curve

Question

Quizplus · Accepted Answer

An increase in inflation typically leads to a leftward shift of the long-run aggregate supply curve as it can increase production costs, reducing the economy's capacity to produce goods and services at the same price level.

If Inflation Increases, This Could Be Illustrated as A