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

There is a reduction in household income tax.

b

A cyclone destroys the year's wheat crop.

c

Households decide to have less children.

d

A significant amount of iron ore is found in Western Australia, capable of supplying

world trade for the next 50 years.