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Supply shocks are unexpected events that suddenly change commodity or service prices. A demand side shocks affect demand in one or more countries and may include an unexpected change in interest rates. Supply side shocks affect prices and costs in countries and can include a construction or capital investment boom.

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Q: Demand side and supply side shocks?
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Related questions

Define Market Price?

The current price at which an asset or service can be bought or sold. Economic theory contends that the market price converges at a point where the forces of supply and demand meet. Shocks to either the supply side and/or demand side can cause the market price for a good or service to be re-evaluated.


What is the difference between supply side gaps and demand side gaps?

Supply is the amount produced and demand is the amount that is wanted.


Supply side policies or demand side polices?

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Difference between demand and supply of money?

The supply side deals with relationship between the price and the quantity. The demand side deals with the volumes that buyers are willing to purchase at various prices


What is the difference between supply side and demand side?

THE ANSWER IS IN YOUR BRAIN ! you people are reaaly dumb


What are supply shocks?

When you shock supplies


Should demand side policies always be used rather than supply side policies when a government intervenes in an economy?

If the problem in the economy is due to a lack of demand than demand-side policies would be required. If the economy is experiencing a recession, for example, then demand side policies might be appropriate. If the economy is at or near full employment then the focus might be more on increasing aggregate supply.


Demand rises and supply is constant?

No. If demand rises, then supply falls. Transveresly, if demand falls, then supply rises.


What happens if there is not enough supply for the demand?

If there is not enough supply for the demand, the demand won´t be able to buy the supply


Law of demand and supply?

Consumers is the law of supply and demand.


Sentence with supply and demand?

Her supply of tight sweaters increases the demand for her as a date on the weekend.


What happens if theres more demand than supply?

When there is more supply than demand, there is commonly a drop in price of the product in an effort to increase the demand and achieve the equilibrium between supply and demand once again. Supply and demand are like a see-saw. As supply goes down, demand goes up; as demand goes up, supply goes down.