A temporary supply shock that raises prices

Question

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A temporary supply shock is a short-term disruption to the supply of goods or services. It can lead to an increase in prices in the short run, but in the long run, the market adjusts and prices go back to their equilibrium level. This means that there is no long-run impact on inflation and output. The real interest rate may fluctuate in the short run but it does not have a long-term effect. A temporary supply shock does not necessarily cause output to fall or inflation to rise in the long run.

A Temporary Supply Shock That Raises Prices