12. 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.
12. 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.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 8PA
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12. 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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