EBK ESSENTIALS OF ECONOMICS
4th Edition
ISBN: 8220103647380
Author: KRUGMAN
Publisher: MAC HIGHER
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Chapter 16, Problem 6P
To determine
Concept Introduction:
Demand Shock: In every economy, it is a type of unexpected situation that leads to change in the demand for output for shorter time. Demand may decrease or increase depending upon the type of shock.
Positive Demand Shock: It is a type of shock in which aggregate demand in an economy expands. It leads to increase in the
Negative Demand shock: it is a type of shock in which aggregate demand in an economy contracts. It causes price to decrease.
Supply Shock: In every economy it is a type of sudden event that leads to change in the supply of output for a short period of time. Supply may decrease or increase depending upon the type of shock.
Positive Supply Shock: It is a type of shock in which
Negative Supply Shock: It is a type of shock in which aggregate supply in an economy degrades.
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