An Increase in the Price of a Resource Such as Oil

Multiple Choice

An increase in the price of a resource such as oil
I. shifts the aggregate demand curve leftward.
II. shifts the long-run aggregate supply curve rightward.
III. shifts the short-run aggregate supply curve leftward.
IV. increases the price level and decreases real GDP in the short run.

A) Only I is correct.
B) Both I and II are correct.
C) Only III is correct.
D) Both III and IV are correct.