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Photo: Cost-Push Inflation





Cost-Push Inflation

Description: If short run AS shifts to to the left, price levels will increase, and unemployment will also increase. This is also known as a supply shock. If cost of production increases, firms will cut down production and hire fewer workers.



welkerjason
welkerjason
  • Title: Cost-Push Inflation
  • Photo added by welkerjason, Apr 11 2008, 2:08 PM EDT , and last updated by yunqimok, May 7 2008, 9:44 AM EDT
  • Keyword tags: None
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