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A technology shock is the kind resulting from a technological development that affects productivity. If the shock is due to constrained supply, it is termed a supply shock and usually results in price increases for a particular product. Supply shocks can be produced when accidents or disasters occur.
Illegal immigrants would move to the United States seeking higher wages than in their home countries. The influx of foreign laborers willing to work for wages below the pre-immigration market price in the United States would cause wages for U.S. domestic unskilled workers to fall and cause U.S. domestic unskilled workers to lose their jobs to ...
Advocates of shock therapy view Poland as the success story of shock therapy in the post-communist states and claim that shock therapy was not applied appropriately in Russia, while critics claim that Poland's reforms were the most gradualist of all the countries and contrast China's reforms with those of Russia [6] and their vastly different ...
According to Barry Eichengreen, the snake was troubled by economic shocks (such as the 1973 oil crisis and commodity market disruptions), which had asymmetric implications for different European countries, leading to greater unemployment in some countries than others. As a consequence, some European countries were pressured to respond in ...
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. [1] 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.
Economists offer two principal explanations for why stagflation occurs. First, stagflation can result when the economy faces a supply shock, such as a rapid increase in the price of oil. An unfavourable situation like that tends to raise prices at the same time as it slows economic growth by making production more costly and less profitable.
European automakers are still digesting the shock from the sudden onslaught of cheap Chinese carmakers like BYD onto their shores months after the first purpose-built ships started ominously ...
The term “shock” connotes the fact that technological progress is not always gradual – there can be large-scale discontinuous changes that significantly alter production methods and outputs in an industry, or in the economy as a whole. Such a technology shock can occur in many different ways. [3]