Demand shock

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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References in periodicals archive ?
The next recession will start as a demand shock, (https://www.cnbc.com/2019/07/22/morgan-stanley-sees-credible-bear-case-for-a-us-recession.html) according to Ellen Zentner , Morgan Stanley chief U.S.
The sustained increase in non-oil investment for more than a year in response to a positive oil-specific demand shock in the full sample is a notable result.
However, the present tariff related uncertainty present a risk for a "demand shock" that could lead to an inventory unwind in the semi supply chain, Moore warns investors.
Operating profits from serving the local region for a firm with productivity [phi] and local demand shock [[lambda].sub.i] [member of] [LAMBDA] are
respectively, [sigma] is the common output elasticity to the effective exchange rate, [s.sub.A] and [S.sub.g] are the nominal exchange rates of the two countries expressed with respect to the common currency, (2) [beta] is the relative weight of each country with respect to the other, (3) and [u.sub.A] is an aggregate demand shock that is assumed to affect only country A.
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. 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.e.
Because this is shorter than it takes for an initial demand shock to reverberate through the supply chain, the contract has a significant risk of painful and premature failure.
But in the short term, the cutbacks in investment and hiring in Beaudry and Portier's model would look at lot like a demand shock.
During the initial phase of the crisis, in 2008-2009, companies have mainly suffered from the adverse effects of negative demand shock .
If oil and stock prices move in the same direction, QNB interprets this as being caused by a demand shock. Conversely, if they move in opposite directions, QNB interprets this as being driven by an oil supply shock.
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.
* China's Demand Shock and Its Geopolitical Consequences

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