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.

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Supply shock

References in periodicals archive ?

Consider the example of an adverse demand shock, shown on the right-hand side - that is, investors will want to sell bonds as the economic outlook improves and expectations of higher rates mount.

Coeure delivers speech at 2018 US Monetary Policy Forum

To better understand export diversification in Lebanon, while taking into account highly sophisticated domains of production and an absence of a policy-driven structural change, the literature has attributed changes in sophistication levels in different countries to two key causes: A productivity shock or a demand shock.

Missed opportunities in Lebanon's industrial sector

During the initial phase of the crisis, in 2008-2009, companies have mainly suffered from the adverse effects of negative demand shock .

Luxembourg : Publication of book studies 104 - employment, wages and prices: how did firms adjust during the economic and financial crisis?EVIDENCE From a survey of Luxembourg firms

If oil and stock prices move in the same direction, QNB interprets this as being caused by a demand shock.

Oil prices to average $41 in 2016, rising to $51 in 2017: QNB

Second, we find that in the presence of a positive technology shock on the final output sector and a positive demand shock on preferences, RES production growth is higher with an energy policy intervention based on a stock of public capital than with a monetary subsidy.

Public policy options for renewable energy source development

We include the BDI in the model to determine whether the demand curve for oil shifts because of a global demand shock or an oil-specific demand shock.

Evaluating a year of oil price volatility

The restrictions applied are as general as possible--that prices and quantities move in the same direction following a demand shock and inversely following a supply shock.

Oil prices and economic activity

It prefers being an informed Stackelberg follower to being an uninformed simultaneous move Cournot player when the variance of the demand shock is high, and Stackelberg competition therefore arises endogenously.

Information value under demand uncertainty and endogenous market leadership

r,t]]) we assume five exogenous shocks that contemporaneously affects endogenous variables demand shock ([[epsilon].

Interest rates and structural shocks in European transition economies

A rise in the policy interest rate, for example, will be interpreted partially as a central bank attempt to offset a projected positive demand shock and partially as an attempt to contract real output to offset a positive cost shock.

Announcements and the role of policy guidance

One does not have to be a hardcore Keynesian to wonder what the effect would be of such a demand shock on the U.

The story of a disillusion

Aspachs-Bracons and Rabanal study the response of the Spanish economy in a currency union to fluctuations in housing prices and residential investment: a decrease in interest rates and a positive housing demand shock lead to a rise in both final consumption and residential investment.