At the Beginning of 2015,a Country Is at Full-Employment

Multiple Choice

At the beginning of 2015,a country is at full-employment.During 2015,oil-producing countries decrease oil production leading to much higher oil prices.The higher oil prices can

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