Question: Using the AD-AS (aggregate demand and aggregate supply) model, explain what happens in the short-run and in the long-run after a) an exogenous decrease

Using the AD-AS (aggregate demand and aggregate supply) model, explain what happens in the short-run and in the long-run after a) an exogenous decrease in the price of oil b) and the Fed responds with the aim of keeping keeping output and employment at their natural levels.

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