A supply shock is an event that suddenly increases or decreases the supply of a commodity or service, or of commodities and services in general. This sudden change affects the equilibrium price of the good or service or the economy's general price level.
In the short run, an economy-wide negative supply shock will shift the aggregate supply curve leftward, decreasing the output and increasing the price level. For example, the imposition of an embargo on trade in oil would cause an adverse supply shock, since oil is a key factor of production for a wide variety of goods. A supply shock can cause stagflation due to a combination of raising prices and falling output.
In the short run, an economy-wide positive supply shock will shift the aggregate supply curve rightward, increasing output and decreasing the price level. A positive supply shock could be an advance in technology (a technology shock) which makes production more efficient, thus increasing output.
Technical analysis
The diagram to the right demonstrates a negative supply shock; The initial position is at point A, producing output quantity Y1 at price level P1. When there is a supply shock, this has an adverse effect on aggregate supply: the supply curve shifts left (from AS1 to AS2), while the demand curve stays in the same position. The intersection of the supply and demand curves has now moved and the equilibrium is now point B; quantity has been reduced to Y2, while the price level has been increased to P2.
This was reported by the railway transport news portal RailwaySupply...News on railway transport, industry, and railway technologies from Railway Supply that you might have missed. ... на Railway Supply.
This was reported by the railway transport news portal RailwaySupply... on Christmas Eve, leaving passengers in shock ... Сообщение More than 400 passengers escaped tragedy after driver’s shocking death near Paris появились сначала на Railway Supply.
Supply Dynamics ... Scheduled for April 2024, this event will reduce Bitcoin’s mining rewards, decreasing the supply of new coins and potentially boosting prices ... With the next halving approaching, many traders expect a supply shock to propel prices.
The total supply of the Solana meme coin is now 91 trillion tokens, down from the original 100 trillion tokens ... This could lead to a supply shock, which would make BONK more valuable. ....
... towards accommodating inflation volatility from external and supply-side shocks,” the central bank chief said in a statement, days after the Cabinet approved the monetary policy target for next year.
Since May 2002, the BSP has maintained a restrictive monetary policy stance to temper inflationary pressures arising from domestic and global supply shocks.
The water necessary for their recovery has been in short supply ... The average rainfall in the Valley is about 20 inches per year, so about half of the water that a tree needs must be supplied through irrigation.
In the episode, Lauren gave the audio as a secret Santa present to Ian (Adam Woodyatt) who, thinking it was a festive playlist, played it to a shocked Queen Vic.
I was shocked," she said ...The USAEmergencySupply notes that mold in unopened cans is unusual and usually means that "there was either a flaw in the" canning process procedure, "or something affected the jar or can after the fact to break its seal.".
But does that theory hold any water? The basic idea is that an influx of foreign labor is a positive shock to the supply of tech workers. When supply goes up, price goes down — that’s Econ 101.
... for lower global commodity prices, particularly energy, inflation risks remain due to the vulnerability of commodity prices to supply shocks such as global disruptions and adverse weather conditions.
"People are assuming it’s the cage-free law that’s affecting supply ... "There’s just been supply shocks happening consistently, then you add this (cage-free) policy on top and it’s just a recipe for higher costs," Thilmany said.
Toyota is reportedly donating $1m to Donald Trump’s inauguration ... Trump’s proposed tariffs on goods from Mexico and Canada would affect many automakers and could deliver supply chain shocks across the auto industry ... “We want a strong economy ... .
January ... and its future ... March ... La Jolla Shores resident GinaPellegrino starts picking up beach toys and supplies left behind at the beach but is soon shocked by the number of items she has collected and looks to unload some of them to a worthy cause ... .
San Diego Union-Tribune
24 Dec 2024
San Diego Union-Tribune
24 Dec 2024