(Figure: Shifting the AD and SRAS) Assume the economy depicted in the figure above is in long-run equilibrium, where the aggregate demand curve is AD₀ and the short-run aggregate supply curve is SRAS_0. If there is a supply shock, such as a drastic increase in the price of oil, this will cause a _____ and a movement to a short-run equilibrium at point _____.

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The Answer of (Figure: Shifting the AD and SRAS) Assume the economy depicted in the figure above is in long-run equilibrium, where the aggregate demand curve is AD₀ and the short-run aggregate supply curve is SRAS_0. If there is a supply shock, such as a drastic increase in the price of oil, this will cause a _____ and a movement to a short-run equilibrium at point _____.

(Figure: Shifting the AD and SRAS) Assume the Economy