(Answered) Gasoline is used by both consumers and firms a is a

Economics

Gasoline is used by both consumers and firms. a. Is a temporary increase in gasoline price a demand shock or a supply shock? Explain your reasoning. b. Use the AD-AS model to discuss the effect of a temporary increase in gasoline prices on output and inflation, both in the short run and in the long run. c. Use the MP curve or the IS curve to discuss the effect of a temporary increase in gasoline prices on the real interest rate. d. Display the short-run and long-run Phillips curves that are consistent with your answer in Parts (a) and (b). Explain your reasoning.

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