What will be the impact on aggregate supply and demand if there is an increase in the price of imported oil?

What will shift left and right?What will be the impact on aggregate supply and demand if there is an increase in the price of imported oil?
Aggregate supply will increase, because sellers will sell more for a higher price.What will be the impact on aggregate supply and demand if there is an increase in the price of imported oil?
as with any commodity price (oil, corn, wheat), an increase in price will shift AS to the left, just as Norm stated previously. All this happening in the short run of course, unless this shift creates cost push inflation/stagflation, in which your demand curve will also shift left to compensate, creating a better homeostasis between unemployment and inflation.
the short term aggregate supply curve will become steeper and move to the left as the costs of production rise.





aggregate demand should not be effected in the short term and will remain at the same level; everything else equal.





this should lead to an increase in price; and a decrease in quantity supplied. ie: stagflation. that is the current fear and historically happened in the 1970s during a period of dramatic oil price rises.