Terms Beginning With 'd'

Demand Shocks

  • January 29, 2020
  • Team Kalkine

Those surprise events that result in a rise or fall in demand for goods or services, are referred to as demand shocks. A negative demand shock arises from a fall in demand, while a positive demand results from a sudden increase in demand.

Demand shocks originate from various factors like money supply, tax rates and government spending. Such shocks come about due to changes in consumer preferences.

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