(Answered) consider the economy represented by the aggregate demand-aggregate supplyconsider the economy…

➤ Why do supply shocks cause stagflation in the AD–AS framework?
A negative supply shock, like an oil price spike, shifts short-run aggregate supply left. That raises the price level while lowering real GDP and increasing unemployment. This simultaneity of inflation and stagnation is stagflation. Policymakers face a trade-off because measures to reduce inflation can worsen output and employment.