_________ inflation can be explained by an ________ shift in the aggregate _________ curve.
A) Demand-pull, leftward, demand
B) Cost-push, rightward, demand
C) Demand-pull, leftward, supply
D) Cost-push, rightward, supply

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when there is a rightward shift in the aggregate supply curve, usually caused by an increase in production costs such as an increase in the price of raw materials or labor. This leads to a decrease in the quantity of goods produced and an increase in their price levels.

_________ Inflation Can Be Explained by an ________ Shift in the Aggregate

_ Inflation Can Be Explained by an Shift in the Aggregate