Shifts in Aggregate Demand and Cost-Push Inflation. When wages rise and the short-run aggregate supply curve shifts up, the result is “cost-push” inflation. If the economy was initially at full...

Shifts in Aggregate Demand and Cost-Push Inflation. When wages rise and the short-run aggregate supply curve shifts up, the result is “cost-push” inflation. If the economy was initially at full employment and the aggregate demand curve was shifted to the right, explain how “cost-push” inflation would result as the economy adjusts back to full employment