![Using the AS-AD model, explain what happens when a temporary negative supply shock hits the economy. | Homework.Study.com Using the AS-AD model, explain what happens when a temporary negative supply shock hits the economy. | Homework.Study.com](https://homework.study.com/cimages/multimages/16/nishant14532609502204542813096.jpg)
Using the AS-AD model, explain what happens when a temporary negative supply shock hits the economy. | Homework.Study.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
![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?
![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)