Use the following to answer questions : Exhibit: AD-AS Shifts -(Exhibit: AD-AS Shifts) Starting from long-run equilibrium at A with output equal to $\bar { Y }$ and the price level equal to P₁, a cost-push inflation would be represented by a shift from: A) AD₁ to AD₂ B) AD₁ to AD₃ C) AS₁ to AS₂ D) AS₁ to AS₃

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Quizplus · Accepted Answer

Cost-push inflation is represented by a leftward shift of the aggregate supply curve, indicating a decrease in supply at every price level, which is what choice C describes.

Use the Following to Answer Questions : Exhibit: AD-AS Shifts Yˉ\bar { Y }Yˉ

Use the Following to Answer Questions :
Exhibit: AD-AS Shifts $\bar { Y }$