Demand shock

(redirected from Demand Shocks)

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.
Mentioned in ?
References in periodicals archive ?
The MSR is designed to help tackle the current supply and demand imbalance and make the system more resilient to future 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.
Activity among the region's commodity exporters might weaken with negative external demand shocks, such as a sharper-than-expected investment slowdown in China.
The results contradict the presumption that the SR with variable capital utilization represents true technology shocks because it is orthogonal to demand shocks.
Following demand shocks or price shocks, it usually takes three to four years to see a significant adjustment to the value of labour and capital to match the new economic environment.
2], and demand shocks, given by the term (1 - [omega][beta]) [kappa][[iota].
The list of possible threats is long and varied: floods, earthquakes, volcanic eruptions, political unrest, sudden demand shocks, export/import restrictions, terrorism and even economic uncertainty.
Such demand shocks include shocks to the demand for currency (which indirectly affect the demand for bank reserves) and shocks to the demand for bank reserves.
Holding up against potential demand shocks associated with political instability, passenger traffic of the region's airlines grew 8.
Demand shocks are a plausible explanation for the losses during the 2000s.
Moreover, the results show that the demand shocks have no significant contribution in output variability.

Full browser ?