Shock (economics)

Shock (economics) is when something unexpected and sudden happens that affects the economy. It can be positive (like new and exciting technology becoming available that boosts the economy) or negative (like a natural disaster that destroys businesses and disrupts supply lines). In either case, the news or event causes people to react in different ways that can affect the economy, like spending more or less money, investing in certain things, or even simply expecting different things from the future. That can mean changes in prices and how money moves around, and often has far-reaching consequences.