Supply-side shocks
What Supply-side shocks means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Supply-side shocks
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Reference: Pearson Edexcel
Events such as a natural disaster disrupting global supply chains or a sudden spike in oil prices, linked to production costs or capacity.
A sudden increase in global oil prices is an example, causing an immediate leftward shift in short-run aggregate supply.
Topics that use Supply-side shocks
- Risks and uncertainty (Pearson Edexcel A-Level)
- The AD/AS model (Pearson Edexcel A-Level)
Related terms
- Aggregate Demand (AD)
- Business resilience
- Contingency planning
- Cost-push inflation
- Costs of production
- Demand-pull inflation
- Exchange rate risk
- Factors of production
Using Supply-side shocks in the exam
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