Draw an aggregate demand and aggregate supply graph showing the long-run equilibrium.

"The average price of regular unleaded fuel in Sydney topped $1.80 per litre last week, the second time in history the price has been that high. The first time the average Sydney litre price hit $1.80 was on December 6 last year. The current average in the city was at 178.2 cents per litre and falling as of Tuesday afternoon. Other capital cities were hit by expensive fuel prices as well".

Using the basic (static) aggregate demand and aggregate supply model, analyse the impact in the short and long