Supply shocks (aggregate supply)

Supply-side shocks affect short run aggregate supply and can also affect a country's long-run productive potential. Examples of supply shocks might include: Steep rise in oil and gas prices or other commodities used in productionPolitical turmoil / civil unrest / major strikesSupply shut-downs caused by a public health crisisNatural disasters causing a sharp fall in productionUnexpected breakthroughs in production technology (example of favourable supply shock)