10. 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, use a diagram to illustrate the effect on the economy.

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

b. Cattle farmers suffer a prolonged period of footand-

mouth disease which cuts average cattle herd sizes by 80 per cent.

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