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Supply shock

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Definition of Supply shock

Supply Shock Image 1

Supply shock

n event that influences production capacity and costs in an economy.



Related Terms:

Demand shock

An event that affects the demand for goods in services in the economy.


Floating supply

The amount of securities believed to be available for immediate purchase, that is, in the
hands of dealers and investors wanting to sell.


Money supply

M1-A: Currency plus demand deposits
M1-B: M1-A plus other checkable deposits.
M2: M1-B plus overnight repos, money market funds, savings, and small (less than $100M) time deposits.
M3: M-2 plus large time deposits and term repos.
L: M-3 plus other liquid assets.


Raw material supply agreement

As used in connection with project financing, an agreement to furnish a
specified amount per period of a specified raw material.


Visible supply

New muni bond issues scheduled to come to market within the next 30 days.


supply-chain management

the cooperative strategic planning,
controlling, and problem solving by a company and
its vendors and customers to conduct efficient and effective
transfers of goods and services within the supply chain


Aggregate Supply

Total quantity of goods and services supplied.


Supply Shock Image 2

Aggregate Supply Curve

Combinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not.


Excess Supply

A situation in which supply exceeds demand.


Real Money Supply

Money supply expressed in base-year dollars, calculated by dividing the money supply by a price index.


Supply

An amount made available for sale, always associated with a given price.


Supply-Side Economics

View that incentives to work, save, and invest play an important role in determining economic activity by affecting the supply side of the economy.


 

 

 

 

 

 

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