Suppose that the economy has entered into a recession, and you are asked to determine whether it has been caused by a demand shock or a supply shock….

Suppose that the economy has entered into a recession, and you are asked to determine whether it has been caused by a demand shock or a supply shock. What one piece of data about the current economic conditions will be most helpful in making this distinction?Include an AD-AS diagram for each type of shock in your explanation.

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