Cost-push inﬂation is depicted as a rightward shift of the aggregate demand curve along an
upsloping aggregate supply curve.

Question

Quizplus · Accepted Answer

Cost-push inflation is caused by a decrease in aggregate supply, resulting in a leftward shift of the aggregate supply curve. A rightward shift of the aggregate demand curve along an upsloping aggregate supply curve would result in demand-pull inflation.

Cost-Push Inﬂation Is Depicted as a Rightward Shift of the Aggregate