Economists believe that most short-run ﬂuctuations are the result of supply shocks.

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Economists believe that most short-run fluctuations are the result of demand shocks, such as changes in consumer spending, business investment, or government policies. Supply shocks, such as natural disasters or changes in input costs, can also affect short-run fluctuations, but they are generally considered less important than demand shocks.

Economists Believe That Most Short-Run ﬂUctuations Are the Result of Supply