The article discusses how supply shocks, like sudden increases in oil or food prices, can lead to recessions. It explores whether monetary policy can prevent these recessions by analyzing the impact of supply shocks on output levels. The study finds that a supply shock alone may not cause a recession if the money supply remains stable. However, factors like attempts to control inflation and workers resisting wage cuts can contribute to economic downturns. Ultimately, the decision to use monetary policy to address supply shocks depends on balancing the costs of inflation and unemployment.