Between 2006 and the middle of 2008, oil prices rose sharply – from around $60 to more than $140 per barrel. By the end of 2008, however, oil prices had fallen even more sharply, to just over $40 per barrel. Consider these as two separate shocks. Also, ignore the housing crash and subsequent financial crisis we know was playing out concurrently. Using the AS/AD framework, explain how the economy would evolve in response to these shocks.