Question 3 (Lecture 23d) Each of the following events caused a shift in the AD or AS curve for Singapore (a small open economy that does not export oil or commodities). Identify which curve was affected and describe the short-run effect on equilibrium real GDP and the price level.

a) OPEC's actions to restrict oil output significantly increased the world price of oil in 1979-1980.

b) The beginning of a strong worldwide recovery in 2002 led to a large increase in the demand for many Singapore exports.