supply shock

What Is The Quickest Way To Resolve Problems From A Supply Shock?

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What Is The Quickest Way To Resolve Problems From A Supply Shock? In the event of a supply shock, the quickest way to recover and adjust is by increasing prices. If the supply reduces, then the suppliers shall demand more, this shall cause a burden to the seller. The seller should increase the prices in

How Do External Shocks Affect The Business Cycle?

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How Do External Shocks Affect The Business Cycle? This affects high or low income families, causing lower consumption and higher working hours which contribute to higher productivity. Therefore, this leads to recession due to increasing the production and lower consumption which lead to a negative shock on the economy (Rebelo, 2005). What do external shocks