Demand and Supply-Side Economic Shocks
- AS, A-Level
- AQA, Edexcel, OCR, IB
Last updated 3 Jul 2018
Shocks are events that are by and large unexpected and bring out changes in real economic growth, inflation and unemployment. All countries are exposed to some degree to external economic shocks. There is evidence that lower and middle-income developing nations are more vulnerable partly because they have a less diversified economy with a narrow range of production and export industries.