A real shock is a rapid change in economic conditions that affects the productivity of resources.

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A real shock is a sudden and significant change in economic conditions that alters the productivity of resources, such as a natural disaster, technological advancement or a significant change in government policies. Examples of real shocks include wars, oil crises, pandemics, and natural disasters that can have significant impacts on the economy, affecting productivity, employment, and distribution of resources. These events can cause a sudden and unforeseen shift in economic conditions that can lead to significant changes in economic growth, inflation, and other macroeconomic variables.

A Real Shock Is a Rapid Change in Economic Conditions