In thegraph, the economy is inlong-run equilibrium at point A.

Now, assume that there is an unexpected increase in the price of oil.

1.) Use the line drawing tool to show the resultingshort-run equilibrium on your diagram. Label any new aggregate demand or aggregate supply curve as AD2SRAS2 or LRAS2 as appropriate.

2.) Use the point drawing tool to locate the newshort- run equilibrium point. Label this point B.

Carefully follow the instructionsabove, and only draw the required objects.