Which is true of cost-push inflation?
A)It occurs when the aggregate demand curve shifts rightward.
B)It occurs when the aggregate supply curve shifts rightward.
C)It results in a decrease in the unemployment rate.
D)It results in a movement along the aggregate demand curve.
E)It is caused by the same factors that lead to demand-pull inflation.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the aggregate supply curve shifts leftward, leading to higher prices and reduced output, causing a movement along the aggregate demand curve.

Which Is True of Cost-Push Inflation