In economics, a demand shock is a sudden event that increases or decreases demand for goods or services temporarily. A positive demand shock increases aggregate demand (AD) and a negative demand shock decreases aggregate demand. Prices of goods and services are affected in both cases.
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A demand shock is a sudden change in patterns of private expenditure, especially of consumption spending by consumers or of investment spending by businesses. A monetary policy shock occurs when a central bank departs, without advance warning, from its pattern of interest rate or money supply control.
Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale natural or anthropogenic disaster (e.g. a pandemic).
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What is a demand shock?
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What is the effect of a supply shock on aggregate demand?
When there is a supply shock, this has an adverse effect on aggregate supply: the supply curve shifts left (from AS 1 to AS 2), 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 Y 2 , while the price level has been ...
This causes a sudden and sustained drop in aggregate demand, and this shock is argued to be the proximate cause of a class of economic crises, properly financial crises. Indeed, a fall in the level of debt is not necessary – even a slowing in the rate of debt growth causes a drop in aggregate demand (relative to the higher borrowing year). 
Shock is the state of insufficient blood flow to the tissues of the body as a result of problems with the circulatory system. Initial symptoms of shock may include weakness, fast heart rate, fast breathing, sweating, anxiety, and increased thirst. This may be followed by confusion, unconsciousness, or cardiac arrest, as complications worsen.
Apr 06, 2020 · A demand shock is a sudden and surprise event that dramatically increases or decreases demand for particular goods or services, usually on a temporary basis. A positive demand shock is a sudden...
- Adam Barone
The real demand for money is defined as the nominal amount of money demanded divided by the price level. For a given money supply the locus of income-interest rate pairs at which money demand equals money supply is known as the LM curve .
Short-run fluctuations may also be related to monetary factors, but changes in aggregate demand and aggregate supply can also influence price level. For example, a decrease in demand due to a recession can lead to lower price levels and deflation. A negative supply shock, such as an oil crisis, lowers aggregate supply and can cause inflation.
経済学において、需要ショック（英: demand shock ）とは財・サービスへの需要を一時的に増やす、あるいは減らす突発的な出来事を指す。総需要曲線をシフトさせるような出来事であるとも言い換えることができる 。