An inflation shock is a disturbance to the usual behavior, Ask an Expert

Economics

An inflation shock is a disturbance to the usual behavior of inflation that shifts the IA line. A supply shock is a change in the natural rate of output. Graph the long and short run effects of a positive inflation shock and a negative supply shock in our IA-AD framework.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9474665

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