At the Beginning of 2017,a Country Is at Full-Employment

Multiple Choice

At the beginning of 2017,a country is at full-employment.During 2017,oil-producing countries decrease oil production leading to much higher oil prices.The higher oil prices can

A) decrease aggregate demand and lead to a stagflation.
B) decrease aggregate supply and lead to a stagflation.
C) decrease aggregate demand and lead to a higher price level.
D) increase aggregate supply and lead to an expansion.
E) increase aggregate demand and lead to an expansion.