What would be the next demand and supple shock the UK economy receives?

Question

It would be helpfull to also know how this will affect the economy, by mentioning such concepts as inflation and balance of payments and so on.

Answer 1

It is nearly impossible to say what the next supply shock will be. Generally, shocks occur unexpectedly. When they are expected, they are immediately priced into the market. A shock that could impact supply would be another war, some sort of terroristic act, or a natural disaster such as a storm that destroys a crop. These shocks would have the effect of lowering supply, which would drive prices up (inflationary, albeit it may be only temporary).

Hope this helps.