Classify each of the following as a supply shock or a demand shock. Use a graph to

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Classify each of the following as a supply shock or a demand shock. Use a graph to show the effects on inflation and output in the short run and in the long run.

a. Financial frictions increase.

b. Households and firms become more optimistic about the economy.

c. Favourable weather produces a record crop of wheat and corn in the Prairie provinces.

d. Auto workers go on strike for four months.

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The Economics Of Money, Banking And Financial Markets, Seventh Canadian

ISBN: 9780226531922

7th Canadian Edition

Authors: Frederic S. Mishkin

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Question Posted: Nov 18, 2024 01:00 AM

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Classify each of the following as a supply shock or a demand shock. Use a graph to

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The Economics Of Money, Banking And Financial Markets, Seventh Canadian

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