The document discusses the physiological causes of hypoxemia, including hypoventilation, ventilation-perfusion (V/Q) mismatching, and diffusion impairment. Hypoxemia can result from decreased alveolar ventilation leading to higher PaCO2 and lower PAO2, or from V/Q mismatching like shunts or dead space. Disease states like COPD, pulmonary edema, and fibrotic lung disease cause hypoxemia through various combinations of V/Q mismatching and diffusion impairment. Understanding the alveolar gas and ventilation equations is key to determining the root cause and response to hypoxemia in clinical practice.