Refer to the information provided in Figure 13.3 below to answer the questions that follow. Figure 13.3 -Refer to Figure 13.3.Cost-push inflation occurs if A)the economy moves from Point A to Point B on aggregate supply curve AS₁. B)the economy moves from Point A to Point C on the aggregate supply curve AS₁. C)the aggregate supply curve shifts from AS₁ to AS₀. D)the aggregate supply curve shifts from AS₁ to AS₂.

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the aggregate supply curve shifts to the left, such as from AS₁ to AS₂, indicating a decrease in supply and an increase in prices.

Refer to the Information Provided in Figure 13