Question

Graphically, cost-push inflation is shown as a

Multiple Choice
leftward shift of the AD curve.
rightward shift of the AS curve.
leftward shift of the AS curve.
rightward shift of the AD curve.

Answer 1

Cost-push inflation is shown graphically as a **leftward shift of the AS (Aggregate Supply) curve**. This is because cost-push inflation occurs when the costs of production increase, leading to a decrease in the overall supply of goods and services in the economy at any given price level. Therefore, the correct answer is:

**leftward shift of the AS curve.**