Macroeconomic shock: Difference between revisions
WikiSysopIG (talk | contribs) Created page with "A '''macroeconomic shock''' is an unexpected event or development that causes a significant change in the economic conditions of an economy or a substantial part of the global economy. Macroeconomic shocks can affect GDP, employment, inflation, interest rates, exchange rates, investment, consumption, trade, and financial conditions. A simplified representation is: <math> \text{Macroeconomic Shock} \rightarrow \text{Change in Economic Conditi..." |
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\text{Lower Real Income} | \text{Lower Real Income} | ||
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The effects can differ between commodity-exporting and commodity-importing economies. | The effects can differ between commodity-exporting and commodity-importing economies. | ||
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\text{Greater Potential Output} | \text{Greater Potential Output} | ||
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Technological shocks can also cause structural changes in employment, investment, and the demand for particular skills. | Technological shocks can also cause structural changes in employment, investment, and the demand for particular skills. | ||
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\text{Economic Stabilization} | \text{Economic Stabilization} | ||
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Fiscal responses can include changes in government spending, taxation, transfers, or other budgetary measures. | Fiscal responses can include changes in government spending, taxation, transfers, or other budgetary measures. | ||