1. What is a positive demand shock and how does it affect output, prices, and employment?

2. What are examples of positive demand shocks, including both market-driven and government-initiated events?

1. What is a negative demand shock and what events can trigger it?

2. How do producers typically respond to a negative demand shock, and why does this response occur?

1. What are the economic characteristics of a positive supply shock and how does it shift the SRAS curve?

2. How do positive supply shocks affect production costs, output, prices, and employment?

1. What are the economic characteristics of a negative supply shock and how does it shift the SRAS curve?

2. How do negative supply shocks affect production costs, output, prices, and unemployment?

1. What is stagflation and why is it particularly difficult for an economy to address?

2. How did the 1973 oil embargo create stagflation in the U.S. economy?

1. What is demand-pull inflation and what macroeconomic conditions can cause it?

2. How do economic growth, export surges, government spending, inflation expectations, and money supply increases each contribute to demand-pull inflation?

3. What historical examples illustrate demand-pull inflation and its extreme forms?

1. What is cost-push inflation and how does it differ from demand-pull inflation?

2. What supply-side factors can cause cost-push inflation and how do producers respond?

3. What historical examples demonstrate cost-push inflation and its economic consequences?