For each of the following, use an AD-AS diagram to show the short-run and long-run effects on output and inflation. Assume the economy starts in long-run equilibrium. Instructions: In all the diagrams below, click and drag the appropriate curve or curves to show the short-run changes on the left side and long-run changes (which must also include the short-run changes) on the right side. d. A sharp drop in oil prices (assume the change in oil prices is permanent and no policy actions are taken). Inflation rate Short-Run Effects LRAS Qutput Y SRAS ADO O Inflation rate Long-Run Effects LRAS Qutput Y SRAS AD

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