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pashok25 [27]
2 years ago
5

Please select the type of shock that would produce the indicated shift.

Business
1 answer:
ankoles [38]2 years ago
8 0

The various types of shocks that will be caused are:

  • A leftward shift in the AD curve - Negative demand shock.
  • A leftward shift in the SRAS curve - Negative supply shock.
  • A rightward shift in the SRAS curve -  Positive supply shock.
  • A positive shift that leads to a higher aggregate price level.  - Positive demand shock.
  • A rightward shift in the AD curve - Positive demand shock.
  • A negative shift that leads to a lower aggregate price level - Negative demand shock.
  • Stagflation -  Negative supply shock.
  • A negative shift that leads to a higher aggregate price level - Negative supply shock.
  • A positive shift that leads to a lower aggregate price level - Positive supply shock.

<h3>What causes shocks in the economy?</h3>

When there is a change in the components of demand or supply, there will be a shift in the Aggregate Demand and Supply Curves to show that either demand or supply has changed as a result.

For instance, if there is a weaker harvest for a crop, there will be a leftward shift in the SRAS curve which would lead to a negative supply shock.

In conclusion, supply and demand are prone to shocks.

Find out more on Stagflation at brainly.com/question/23113698.

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