Classify Each Of The Following As A Supply Shock Or

Classify each of the following as a supply shock or a demand shock. Use a graph to show the effects on inflation and output in the short run and in the long run.
a. Financial frictions increase.
b. Households and firms become more optimistic about the economy.
c. Favorable weather produces a record crop of wheat and corn in the Midwest.
d. Auto workers go on strike for four months.

Posted in Uncategorized