Final answer:
The two principal components of economic growth are consumption and investment, which can be disrupted by exogenous shocks such as supply, demand, financial, political, environmental, and technological events.
Step-by-step explanation:
The two main components of economic growth are consumption and investment. Economic growth can be affected by exogenous shocks, which are unexpected events that come from outside the economic system and can cause significant disturbances. These shocks can include a variety of types such as supply, demand, financial, political, environmental, and technological shocks.
For instance, a political shock like a sudden change in government can disrupt investment flows and consumer confidence, while an environmental shock such as a natural disaster can devastate infrastructure and reduce production capacity. Technological shocks, on the other hand, may be positive, leading to improved productivity and growth, or negative if, for example, they cause industries to become obsolete. The effects of these shocks can be complex and depend on the resilience and adaptability of the economic system.