If oil prices increased, what curve(s) is affected? Would this solve the problem of a recessionary gap?

if the price of gas increased then the price of everything would rise. how do yuo think products get to the store? by trucks. meaning that the prices for the product will rise to cover the price of the gas to get them to the store. every little thing is effected by the rise of gas prices. maybe the gas prices will get so high school will be canceled hahah one can only dreamIf oil prices increased, what curve(s) is affected? Would this solve the problem of a recessionary gap?
The poster above is sort of right that the price of everything would increase. Oil prices very strongly determine the costs of production for firms. Because of this, the answer to your question is that the supply curve would shift left (back; inward).





The increase in oil prices would worsen the effects of a recession, because firms are now willing to produce LESS output at any given price (since there are less profits per unit of output because production costs increased per unit of output because of the increased oil prices). Thus, output falls down further, and the recession is now worse.








Sean