need quick response The economy is in long-run equilibrium. Draw a basic aggregate demand and supply graph (with SRAS and LRAS) that shows the economy in short and long-run equilibrium.

a. Crude oil is a key ingredient of many goods and services. Assume that there is an unexpected increase in the price of oil. Show the resulting short-run equilibrium on your graph and explain the short-run effects on output, unemployment rate, and the price level. Again, make sure to illustrate its effect using a well-labeled diagram. b. Assume there is no change in aggregate demand. Explain how the economy adjusts back to long-run equilibrium by itself, which is called a self-correcting mechanism. Make sure to illustrate its effect using a well-labeled diagram. When the economy has adjusted back to long-run equilibrium, how have the values of each of the following changed relative to what they were before the increase in the price of oil: i. Real GDP ii. The price level iii. The unemployment rate c. In the real world, the aggregate demand is not holding constant. Explain government policy to accommodate this adverse shift in aggregate supply. Other to say, explain government policy to offset some of the effects of the shift in the short-run aggregate supply curve. Make sure to illustrate its effect using a well-labeled diagram. When the economy has adjusted back to long-run equilibrium, how have the values of each of the following changed relative to what they were before the increase in the price of oil: i. Real GDP ii. The price level iii. The unemployment rate d. Comparethe price level and real GDP in long-run equilibrium betweenquestion b(Classical economics; self-correcting mechanism) andquestion c (Keynesian economics; accommodative policy).