Economic shocks are random, unpredictable events that have a wide impact on the economy and are caused by things that go beyond economic models.
Economic shocks can be classified according to the economic sector in which they occur or whether they primarily affect supply or demand.
Since markets are interconnected, the effects of shocks can spread through the economy to many markets and have a major macroeconomic impact, for better or worse.
Desperate workers are workers who have stopped looking for work because they did not find suitable employment options or were not shortlisted when applying for a job.
The causes of employee frustration are complex and varied.
The domestic market effect suggests that goods that have large economies of scale and high transport costs will tend to be produced and exported by countries with large domestic demand.
Y2K was commonly used to refer to a widespread computer programming label that was expected to cause significant havoc as the year changed from 1999 to 2000.
An absolute advantage is when a manufacturer can provide a greater quantity of a product or service for the same price or the same quantity at a lower price than its competitors.
Animal spirits come from the Latin spiritus animalis: “breath that awakens the human mind.” It was introduced by the British economist John Maynard Keynes in 1936.
Autarky refers to a state of self-sufficiency and is commonly used to describe countries or economies that seek to reduce their dependence on international trade.
The balance of trade (BOT) is the difference between the value of a country’s imports and exports over a given period and is the largest component of a country’s balance of payments (BOP).
Black Monday refers to the stock market crash that occurred on October 19, 1987, when the Dow Jones Industrial Average lost almost 22% in one day, causing the global stock market to crash.
The Bretton Woods Agreement and the system created a collective international currency exchange regime that operated from the mid-1940s to the early 1970s.