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.
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As Lebanese firms continue to suffer burdensome costs of production and a lack of adequate skills, the increase in Lebanese export sophistication has been largely driven by demand shocks, i.
I use a structural vector autoregression (SVAR) model to identify relative supply and relative demand shocks and quantify their importance as drivers of real exchange rate movements.
In order to analyze wage and employment responses to labor demand shocks, wage and employment regressions were run on both datasets (ACS and QWI) for all three occupations.
This deterioration is mainly explained by demand shocks (perceived as persistent by three-quarters of companies in 2010-2013 against only a third during the initial phase of the crisis).
Downside Growth Risks From Europe: A relapse in the European economic recovery would leave Sweden's open economy vulnerable to external demand shocks.
Their study considered both world oil production and world oil prices to disentangle oil supply and oil demand shocks.
In fact, our analysis is focused both on the short-term, through the evaluation of the responses of the key variables when the system is hit by stochastic technology and demand shocks, and on the long-term, through a dynamic simulation of RES and fossil fuel prices by 2050.
The authors find that local labor demand shocks from fracking have been biased toward low-skilled workers and toward men, reducing the male return to high school completion.
9) More specifically, he identifies three shocks as key determinants of oil price movements: global demand shocks, oil supply shocks, and precautionary demand shocks.
The prevalence of temporary sales raises the question of whether the raw frequency of price changes is a good measure of the responsiveness of inflation to demand shocks.
Oil, Iron ore and copper face both supply and demand shocks, since Chinese GDP growth has declined to 1990 lows, below the Politburo GDP growth target of 7.
Once demand and supply shocks are identified, we follow Chadha, Corrado and Sun (2010) in creating a counterfactual historical series with the effects of either supply or demand shocks stripped out.

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