Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or

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Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or neither. For each event that does shift a curve, draw a diagram to illustrate the effect on the economy.

a. Households decide to save a larger share of their income.

b. Florida orange groves suffer a prolonged period of below-freezing temperatures.

c. Increased job opportunities overseas cause many people to leave the country.


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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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