Supply and demand curve

Supply and demand curve

Supply and demand curve: For each of the following, explain whether it shifts the short-run aggregate supply curve, the long-run aggregate supply curve, or the aggregate demand curve
Households decide to save a smaller share of their disposable income
There is an 8-week strike in the steel industry
Drought in the midwest causes poor wheat harvest
Labor force participation rate increases

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A shift in the aggregate supply is the change of output for goods and services in an economy.   Consequently, when households decides to save their share of disposable income, which is defined as a shift in the aggregate demand curve. This is because people will spend less on consumer goods leading to a shift to the left…………………………..

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