Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 33 - Part XII - Aggregate Demand and Aggregate Supply - Problems and Applications - Page 743: 8

Answer

Please see the graphs for each of the three questions.

Work Step by Step

a) Households saving a larger portion of their income shifts aggregate demand curve to the left, decreasing the equilibrium price and quantity. b) The more intense frost shifts the short run aggregate supply curve to the left, increasing the equilibrium price and decreasing the equilibrium quantity. c) The decreased population will shift neither the short run aggregate supply nor the aggregate demand curve.
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