![TheMoneyIllusion » Did a supply shock cause the Canadian recession? And did tight money make it worse? TheMoneyIllusion » Did a supply shock cause the Canadian recession? And did tight money make it worse?](http://www.themoneyillusion.com/wp-content/uploads/2013/03/AS-AD-e1362682543880.png)
TheMoneyIllusion » Did a supply shock cause the Canadian recession? And did tight money make it worse?
![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 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](https://homework.study.com/cimages/multimages/16/nishant20028314064756583960163.jpg)
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
![Solved: Chapter 24 Problem 23AP Solution | Economics Of Money, Banking And Financial Markets, The 11th Edition | Chegg.com Solved: Chapter 24 Problem 23AP Solution | Economics Of Money, Banking And Financial Markets, The 11th Edition | Chegg.com](https://media.cheggcdn.com/study/0b3/0b39575d-dadd-4105-8715-556457ce6006/7119-24-23AP-i1.png)
Solved: Chapter 24 Problem 23AP Solution | Economics Of Money, Banking And Financial Markets, The 11th Edition | Chegg.com
![A negative supply shock in the short run causes: a. the aggregate supply curve to shift to the left. b. the price level to fall. c. unemployment to fall. d. equilibrium real A negative supply shock in the short run causes: a. the aggregate supply curve to shift to the left. b. the price level to fall. c. unemployment to fall. d. equilibrium real](https://homework.study.com/cimages/multimages/16/supply_shocks53936133456498723433.png)
A negative supply shock in the short run causes: a. the aggregate supply curve to shift to the left. b. the price level to fall. c. unemployment to fall. d. equilibrium real
![Using the AS-AD model, explain what happens when a permanent negative supply shock hits the economy. | Homework.Study.com Using the AS-AD model, explain what happens when a permanent negative supply shock hits the economy. | Homework.Study.com](https://homework.study.com/cimages/multimages/16/ad-as_model5396660993787037584.png)
Using the AS-AD model, explain what happens when a permanent negative supply shock hits the economy. | Homework.Study.com
![Draw graphs to show the effect of monetary policy to fix the problem of a A. negative demand shock. B. negative supply shock. | Homework.Study.com Draw graphs to show the effect of monetary policy to fix the problem of a A. negative demand shock. B. negative supply shock. | Homework.Study.com](https://homework.study.com/cimages/multimages/16/negative_dd_shock6313350564239900680.jpg)