The most likely short-run result of an inward shift of the aggregate demand curve, is rising production costs, will shift the short-run aggregate supply curve inward.
Aggregate demand refers to the total amount of the money spent on the purchase of the commodity for the particular period of time. It includes the demand of the consumer goods, imports, and government spending.
Rising production costs are the most likely short-run effect of an inward movement of the aggregate demand curve, which will shift the short-run aggregate demand curve inward.
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