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, use 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.