Supply shock can be positive or negative. A positive example is from the automobile industry when a new manufacturing technique, the assembly line, was introduced. More cars could be made more quickly at a lower price. This meant cars cost less, so more people could buy them. The author of The Value of Money wants to provide readers with more information about this topic. Highlight the paragraph in the text where the information could best be integrated to achieve this. Inflation is an increase in the prices of goods and services. That baseball cap that became more expensive. That's an example of inflation. As inflation rises, your purchasing power decreases. Purchasing power measures how many goods and services you can buy for a certain doliar amount in other words, the value of your money decreases because you get fewer goods and services for the same amount of money. So, your money has less value. Infiation has different causes. Supply shock is one of them. When a good or service becomes scarce its price goes up in the 1970s, the supply of gasoline in the United States was scarce. There was not enough gasoline available for everyone who needed it. This resulted in an increase in the pnce of gasoline and lang.
