If the aggregate supply curve shifts leftward,then _____.
A)the price level increases and output increases
B)the resulting increase in the price level is usually called cost-push inflation
C)the resulting increase in the price level is usually called demand-pull inflation
D)the price level increases as long as the aggregate demand curve shifts rightward
E)the price level decreases and output increases

Question

Quizplus · Accepted Answer

A leftward shift in the aggregate supply curve indicates that the overall cost of production has increased, leading to higher prices for consumers. This is typically referred to as cost-push inflation, as opposed to demand-pull inflation. The increase in prices is usually accompanied by a decrease in output, as producers are less willing or able to supply goods and services at the higher prices.

If the Aggregate Supply Curve Shifts Leftward,then _____