A country is initially at the long-run and short-run equilibrium. In the short run, we observe that the country experiences an increase in the price level and the unemployment rate at the same time due to a temporary shock (and we know there is one shock only).

Which curve(s) in the LRAS-SRAS-AD diagram must have shifted to generate the observation above? If any of the curves has shifted, state the direction of the shift, propose a factor that leads to the shift of the curve and state clearly whether the factor has increased or decreased.