Russia is a very large country and is endowed with many useful natural resources, among them being petroleum, nickel and the so-called "rare earth" minerals. Petroleum is utilized in the production and or transportation of virtually all products. America has plenty, but the Biden administration has drastically cut back on the domestic production of oil. Nickel is important for making batteries and many other products. Russia has lots and lots, but America has almost none. "Rare earth" minerals are important in the production of semi-conductors and other electronic devices. Again, Russia has lots, America -- not so much. Because the US, Japan, Australia, the industrializeded democracies Europe, and other contries are no longer buying natural resources from Russia, the supply of these resources available to the US. has diminished. As a result, their prices have gone up -- way up. Aggregate Demand ' no change = 0, up = 1, down = 2 Aggregate Supply ' , no change = 0, up = 1, down = 2 Price Level ' 4 indeterminant = 0, up = 1, down = 2 Level of Output ' ' indeterminant = 0, up = 1, down = 2 Nominal Interest Rates ' ' indeterminant = 0, up = 1, down = 2