Recessions generally occur when there is a widespread drop in spending (an adverse demand shock).

Unlike 1973, 1979 or 1990, the market today is going through a demand shock, not a political shock.

The extent to which such confusion occurs is related to the volatility of relative and aggregate demand shocks.

That is, he observes the combined impact on his local price of the current aggregate and relative demand shocks.

Keynesian stimulus needs to be a positive demand shock.

This "demand shock," as it is called by economists, represents an inflationary push on interest rates.

"Since Monday, we've had a supply shock on top of a demand shock."

However, if there are substantial negative demand shocks, even established unions may disintegrate.

For a positive demand shock, this means that we can consider the two comparative statics results in Section 5.1 and 5.2.

The proximate cause of the famine was a demand shock with some reduction in supply.