cost-push shocks are price increases in products and services that occur as a direct result of an increase in the costs of various inputs, such as labor, raw materials, and energy. if there is an unexpected cost-push shock, the aggregate demand and aggregate supply curves will shift in opposite directions. on the supply side, the aggregate supply curve shifts to the left as a result of rising input costs, forcing businesses to cut production and raise prices. this shift is the result of firms being forced to pass on higher costs to consumers. higher prices cause customers to cut back on their spending, which eventually leads to an increase in aggregate demand. as a result, the aggregate demand curve shifts to the right, indicating an increase in aggregate demand.