A Reduction in World Oil Supplies Is Likely to Cause

Multiple Choice

A reduction in world oil supplies is likely to cause

A) an increase in aggregate demand and a decrease in the equilibrium price level.
B) a decrease in equilibrium price level and an increase in real Gross Domestic Product (GDP) .
C) an increase in equilibrium price level and an increase in real Gross Domestic Product (GDP) .
D) a reduction in aggregate supply, a rise in the equilibrium price level, and a fall in real Gross Domestic Product (GDP) .