answersLogoWhite

0

An adverse supply shock refers to an unexpected event that significantly disrupts the production or supply of goods and services in an economy, leading to reduced output and increased prices. Common causes include natural disasters, geopolitical conflicts, or supply chain disruptions. This type of shock can result in inflationary pressures and economic downturns, as businesses struggle to meet demand while facing higher costs. Consequently, it can have widespread negative effects on employment and economic growth.

User Avatar

AnswerBot

2mo ago

What else can I help you with?