Explain and Demonstrate Graphically the Effects of a Negative Supply

question 60

Essay

Explain and demonstrate graphically the effects of a negative supply shock. What happens to the economy if no action is taken? What happens if monetary and or fiscal policy is used to reduce unemployment?

---

Definitions:

Biogeography

Study of patterns in the geographic distribution of species and communities.

Distribution

The process by which goods get distributed or spread out across different locations, or the statistical spread of values in a dataset.

Radiometric Dating

Method of estimating the age of a rock or fossil by measuring the content and proportions of a radioisotope and its daughter elements.

Volcanic Rocks

Igneous rocks that are formed from the solidification of lava or magma ejected from volcanoes.