How does a leftward shift in the aggregate supply curve typically affect the economy during a period of cost-push inflation?

A leftward shift in the aggregate supply curve means that the overall supply of goods and services in the economy has decreased. This often happens during cost-push inflation, where rising costs of production, like higher wages or raw material prices, make it more expensive for businesses to produce items. As a result, fewer goods are available in the market, which can lead to higher prices for consumers because demand remains the same or even increases. For example, if oil prices rise sharply, it costs more for transportation and manufacturing, causing businesses to produce less and raise prices. This combination of reduced supply and increased prices can lead to slower economic growth and higher unemployment, creating challenges for both consumers and businesses.