EXTERNAL CAUSES (TECHNOLOGY SHOCKS)



Technology shocks:

  • Growing technology enables production of new and better products and services. These products generally require huge investments for new technology adoption.
  • This leads to expansion of employment, income and profits etc. and give a boost to the economy. 
  • For example, due to the advent of mobile phones, the telecom industry underwent a boom and there was expansion of production, employment, income and profits.

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