Assertion (A): Cost inflation is caused by the shift in the aggregate supply curve.
Reason (R): Shift in aggregate supply curve takes place because of the increase in wages.
1
Both (A) and (R) are true and (R) is the correct explanation of (A).
2
Both (A) and (R) are true and (R) is not the correct explanation of (A).
3
(A) is true, but (R) is false.
4
(A) is false, but (R) is true.