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suppose an economy is in its long-run macroeconomic equilibrium when an oil shock shifts the short-run aggregate supply curve to the left resulting in a recessionary gap. a. how do the aggregate price level and aggregate output change in the short run as a result of the oil shock? what is this phenomenon known as? as a result of the oil shock, the aggregate price level


"As a result of the oil shock, we can observe a decline in the price level, which consequently leads to a lower cost of hiring more workers and increasing production. Price is defined as the amount charged by a supplier for goods or services and also refers to the amount a consumer is willing to pay for such items. It is the compensation that one party pays to another for the exchange of goods or services, often referred to as the production price or the value of an item in terms of money. In certain cases, price may be associated with a bounty or reward, as seen when authorities offer a bounty on an individual's head. Synonyms for price include deduction and discount, and these terms relate to the act of reducing the selling price of an item. To delve deeper into the topic of price, you can visit the provided link at brainly.com/question/19091385 #SPJ4."