Sort the following shocks into aggregate supply or aggregate demand shocks. Remember that "shocks” include both good and bad events. No need to motivate your answer. Fall in the price of oilA rise in consumer optimismA hurricane that destroys factoriesGood weather that creates a bumper cropA rise in sales taxesForeigners buy fewer goodsFearNew inventions occur at a faster paceA faster money growth rate

"Aggregate supply indicates total units of commodities that firms produce and sell at a given price…

Answered: Sort the following shocks into…

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

Section15.2: Explaining Short-run Economic Fluctuations

Problem 2QQ

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Sort the following shocks into aggregate supply or aggregate demand shocks. Remember that "shocks” include both good and bad events. No need to motivate your answer.

1. Fall in the price of oil
2. A rise in consumer optimism
3. A hurricane that destroys factories
4. Good weather that creates a bumper crop
5. A rise in sales taxes
6. Foreigners buy fewer goods
7. Fear
8. New inventions occur at a faster pace
9. A faster money growth rate

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