Cost-push inflation occurs because of a:
A)rightward shift in the aggregate demand curve.
B)leftward shift in the aggregate demand curve.
C)rightward shift in the aggregate supply curve.
D)leftward shift in the aggregate supply curve.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the aggregate supply curve shifts leftward, leading to higher prices due to increased production costs, such as wages or raw materials.

Cost-Push Inflation Occurs Because of A