Describe the impact of price increase on aggregate supply


Problem

Between 2004 and 2007, the price of petroleum products in the United States more than doubled, and gasoline and diesel fuel peaked at over $3.00 a gallon. Describe the impact of this price increase on aggregate supply. How might it affect employment, unemployment, and the price level? Would the impact depend on whether consumers and business thought the price increase was permanent?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: Describe the impact of price increase on aggregate supply
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