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Using a short-run aggregate supply curve, explain the likely effect on the price level of the following, assuming that the prices of all factor inputs are fixed. (a) In 2007, output in the UK economy was booming. Real GDP rose by 2.6 per cent. (b) In 2009, there was a recession in the UK economy and output fell. Real GDP fell by 4.3 per cent.1. Analyse the effects on the macroeconomic equilibrium if the price of oil increases. (for this you should write an explanation of what will change and draw the diagram. Explain the result of what will happen to national output/Real GDP)