Isolated negative aggregate supply shocks, in the absence of monetary validation, will

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Isolated negative aggregate supply shocks can eventually be self-correcting as wages slowly fall. As wages and prices adjust downward, the short-run aggregate supply curve shifts to the right, eventually returning the economy to potential output level. However, this process can be slow and painful, and government policy to expand the money supply can speed up the adjustment process.

Isolated Negative Aggregate Supply Shocks, in the Absence of Monetary