We categorize all the types of macroeconomic shocks into just three types: Spending, Supply, and Financial. Notice that these correspond to the three markets we built in our simplified Circular Flow of the Economy diagram. Each type of shock has its own unique effect on the macroeconomy.
This video outlines how this looks like in a graph. Tune in to the following video where we will apply it to many different historical scenarios.
Thank you @gabrielzinho3230 Gabriel Monteiro for his writing assistance.
