Question

In the case of cost-push inflation, the supply curve shifts

• A. To the left
• B. To the right
• C. Downwards
• D. Upwards

Answer 1

The correct option is A

To the left

In the case of cost-push inflation, if there is an increase in the cost of production of commodities due to a rise in the average and marginal costs of production, it causes the supply curve of a commodity to shift to the left.