In particular, an adverse shock to aggregate supply, such as an increase in oil prices, can give rise to stagflation.
Since 2001, economic growth declined caused by adverse shocks such as a slowdown in the global economy and natural disasters.
It is also prone to other adverse shocks such as natural disasters.
The financial accelerator in macroeconomics is the idea that adverse shocks to the economy may be amplified by worsening financial market conditions.
A strong safety net also makes it unnecessary to have industry-by-industry bailouts in response to adverse shocks.
Moreover, policy distortions in these countries work to magnify the effects of adverse shocks.
Moreover, the fiscal challenges in the euro-area periphery highlighted the potential for further adverse shocks to demand.
There haven't been any adverse shocks to the economy.
The Commission also believes that eurobonds could make the eurozone financial system more resilient to future adverse shocks and reinforce financial stability.
Strategies can help mitigate the impacts of adverse shocks by reducing the intensity of resource consumption and environmental impacts, while alleviating pressure on commodity prices.