what-happens-to-short-run-equilibrium-if-there-is-a-sudden-increase-in-oil-price

Question

What happens to short run equilibrium if there is a sudden increase in oil prices?

Accepted Answer

Short run aggregate supply shifts left, increasing price level and decreasing real GDP

Answer

Aggregate demand shifts left, decreasing price level and real GDP

Answer

Short run aggregate supply shifts right, decreasing price level and increasing real GDP

Answer

Aggregate demand shifts right, increasing price level and real GDP