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Demand Shock |
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Demand shock An event that affects the demand for goods and services in an economy. Demand Shock Any sudden event that dramatically but (usually) temporarily increases or decreases demand for one or more goods or services. The event may result from government intervention ? such as a change in money supply ? or may be a random occurrence in the market. For example, a company announcing that it is discontinuing a certain product may see an increase in demand for that product because people want to buy it while they can. This results in an increase in price for that product. However, if that company decides not to discontinue the brand, demand will likely taper off, resulting in a return to equilibrium. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| ? Mentioned in | ? References in periodicals archive | |
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| A big assumption behind the benign scenario of a tightening labor market boosting nominal GDP in the short-term is that there is no negative demand shock to upset Japan's labor market. With two billion bushels of corn and 450 million of beans being carried over, there is ample room for a demand shock or a minor setback in production. Therefore, in response to a demand shock, and in the absence of some additional countervailing disturbance, the real rate must be moved in the same direction as the movement in demand resulting from the equity shock. |
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