Explain and show graphically why might a supply shock lead, Business Economics

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Explain and show graphically why might a supply shock lead

Explain and show graphically why might a supply shock lead to stagflation.

What kind of monetary policy can the government implement when the economy is going through a period of stagflation (expansionary or contractionary)? Show graphically how the government's intervention will affect the economy during a period of stagflation.

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