Negative supply shocks: Negative supply shocks are unexpected events that reduce the availability of goods and services. For example, a natural disaster destroying farmland would lead to decreased agricultural output.
Positive supply shocks: Positive supply shocks are unexpected events that increase the availability of goods and services. For instance, a technological innovation leading to more efficient production methods would result in increased productivity.
Aggregate Supply: Aggregate Supply is the total quantity of goods and services that all producers are willing and able to produce at different price levels in an economy.