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1. A supply-pushed shock is an event/policy that directly affects factor productivity, capital, and/or full-employment, and affects the aggregate supply first. Then, describe demand-pulled shock.
1. A "supply-pushed shock" is an event/policy that directly affects factor productivity, capital, and/or full-employment, and affects the aggregate supply first. Then, describe "demand-pulled shock."
2. "Short-Run Output" follows from the expenditure approach and focuses on what firms produce following current aggregate demand when prices, wages, and/or expectations are sticky. Then, describe "Long-Run Output."
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