Recall the AD-AS model you learned in this course.

Assume that at the end of 2021 Country's X economy is in the long run equilibrium, depicted as follows:

Assume that in 2022 there is an increase in oil prices which led to an increase in prices across all industries in country X. 

Assuming that no other change or policy takes place, which one of the following diagrams depicts the short run equilibrium after the increase in oil prices?

1. 

2. 

3. 

4. 

5.