Did the decline in the price of oil cause a shift in the aggregate supply curve or the aggregate demand curve?

From 2014 to 2015, the average price of crude oil plunged from $100 per barrel to $50 per barrel.  a) Did the decline in the price of oil cause a shift in the aggregate supply curve or the aggregate demand curve? b) Draw an aggregate supply–aggregate demand diagram to illustrate the impact of the oil price decline. Label the original aggregate equilibrium and the new aggregate equilibrium. Does output Q rise or fall?

Solution:

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