![In a small open economy, is a negative supply shock or a negative demand shock more damaging for medium-run output? Explain in words and use AD-EDU diagrams to back up your argument. In a small open economy, is a negative supply shock or a negative demand shock more damaging for medium-run output? Explain in words and use AD-EDU diagrams to back up your argument.](https://homework.study.com/cimages/multimages/16/srac2s3441965401512324607.jpg)
In a small open economy, is a negative supply shock or a negative demand shock more damaging for medium-run output? Explain in words and use AD-EDU diagrams to back up your argument.
![FRB: Finance and Economics Discussion Series: Screen Reader Version - Estimating Machinery Supply Elasticities Using Output Price Booms FRB: Finance and Economics Discussion Series: Screen Reader Version - Estimating Machinery Supply Elasticities Using Output Price Booms](https://www.federalreserve.gov/pubs/feds/2011/201103/fig2.gif)
FRB: Finance and Economics Discussion Series: Screen Reader Version - Estimating Machinery Supply Elasticities Using Output Price Booms
![Supply Shock: Economic Growth at the Crossroads and the Steady State Solution: 9780865717442: Czech, Brian, Daly, Herman - Amazon.com Supply Shock: Economic Growth at the Crossroads and the Steady State Solution: 9780865717442: Czech, Brian, Daly, Herman - Amazon.com](https://m.media-amazon.com/images/I/81HiFbaBh9L._AC_UF1000,1000_QL80_.jpg)