Economic shocks
What Economic shocks means in Economics A-Level, as defined for AQA.
Definitions of Economic shocks
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Reference: AQA
Events such as adverse weather in agricultural markets, which act as a negative supply shock, shifting the supply curve left and raising the equilibrium price of crops.
Changes such as a negative supply shock, like a sudden increase in global energy prices, that shift the short-run AS curve to the left.
Sudden, unexpected events that significantly impact the macroeconomy, shifting either aggregate demand or short-run aggregate supply.
Topics that use Economic shocks
- Aggregate demand and aggregate supply analysis (AQA A-Level)
- The determination of equilibrium market prices (AQA A-Level)
Related terms
- Aggregate demand
- Aggregate demand components
- Aggregate supply
- Ceteris paribus
- Costs of production
- Demand-deficient (cyclical) unemployment
- Disequilibrium
- Equilibrium
Using Economic shocks in the exam
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