The US economy experiences different types of shocks, including policy and business cycle shocks. By analyzing 101 economic indicators, researchers found that there are typically four main types of shocks affecting the economy: monetary policy, fiscal policy, demand, and supply. These shocks have significant impacts on output, employment, and inflation. Interestingly, negative demand shocks can actually lead to long-term improvements in productivity. Overall, both policy and non-policy shocks play important roles in shaping the US economy's ups and downs.