Negative Shocks = LRAS Curve Moves Left | Positive Shocks = LRAS Curve Moves Right |
---|---|
Bad weather (important in agricultural economy) | Good weather (important in agricultural economy) |
Higher price of oil or other important input | Lower price of oil or other important input |
Productivity slump/technology slump | Productivity boom/technology boom |
Higher taxes or regulation | Lower taxes or regulation |
Disruption of production by war, earthquake, pandemic | Smooth production without disruption |