The reaction is a reduction-oxidation reaction, AgCl is an oxidizing agent since it receives electrons and Li is a reducing agent since it donates electrons.
The respective reduction and oxidation reactions are:
[tex]\begin{gathered} Li^0-1e^-\rightarrow Li^1\text{ (}Ox_{}idation) \\ Ag^1+1e^-\rightarrow Ag^0\text{ (}Reduction) \end{gathered}[/tex]