What's it? An adverse economic shock is a sudden, unexpected, and dramatic change in aggregate supply and demand that hurts the economy. For example, shocks result in high and uncontrollable inflation or a recession. In other cases, they give rise to
Economic Shock
Economic Shocks: Disrupting Growth and Stability [Causes and Impacts]
What's it: An economic shock is a sudden and unexpected significant change in an economy's output due to changes in external factors. Shocks suddenly cause the aggregate supply curve or demand curve to shift to the right or left. Such events not
Supply Shock: Disrupting Markets and Investment Strategies [+ Causes and Effects]
What's it? A supply shock is a sudden and unexpected event that causes a dramatic change in output. It can be positive or negative. It is positive if it increases output and negative if it decreases output.Shocks here can refer to macroeconomic
Demand Shocks: Causes, Impacts, and Investment Strategies
Demand shocks are sudden jolts to the economy that disrupt the normal balance between supply and demand for goods and services. Imagine a wave unexpectedly crashing over a market - that's the essence of a demand shock. These disruptions can be