4. The COVID-19 pandemic triggered an unprecedented change in the oil industry, leading to a historic market collapse in oil prices In 2020, worldwide demand for oil fell rapidly as governments closed businesses and restricted travel due to the COVID-19 pandemic. An oil price war between Russia and Saudi Arabia erupted in March 2020 when the two nations failed to reach a consensus on oil production levels. In April, an oversupply of oil led to an unprecedented collapse in oil prices, forcing the contract futures price for West Texas Intermediate (WTD) to plummet from $180 a barrel to around -$37 a barrel. Which of the two diagrams given below showing a change in the aggregate supply (AS) or aggregate demand (AD) curve best describes the effect of the change in oil prices on the economy? Briefly explain your answer (2 marks) General Diagram I General Price LRAS Price Diagram 2 Level or SRAS LRAS inflation Level or SRAS inflation SRAS PO PA Pi AD AD ADo Yo Y Real GDP Natural race YI Y Real GDP DX English (Australia) Text Predictions: On X Accessibility: Investigate Focus