Use website to construct graph: https://fred.stlouisfed.org

Negative Supply Shocks - How often are negative supply shocks, i.e., leftward shifts of the LRAS curve associated with recessions?Plot on amonthlybasis sinceJanuary 1973 toMarch 2021the real price of oil - measured as the ratio of the nominal price of oil (FRED code:WTISPLC) to the seasonally adjusted U.S. Consumer Price Index (CPIAUCSL).(Make sure to convert the index into a price level (as opposed to an index) by dividing the index by 100.In other words, your transformation should use the equation"a/(b/100)", where "a" is the price of oil and "b" is the Consumer Price Index.)(Note that this index uses 1982-1984 as its base year.)

(i)Attach Graph

(ii)Identify the last recession that may have been triggered,in part, by an oil price shock.

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(iii)Examining your graph, identify those recessions withsomesupply-shock component?(You need only identify the years, not the months.)

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(iv)What is the March 2021 value of this real oil price series?(Round to 2 decimal places.) So how can we say that the pandemic recession has a strong supply component?

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(v)Reviewing your graph, does the real price of oil show any significant secular trend upward over the past decades?Why or why not?So what would you expect the trend over the next 20 years to be?

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