4. Suppose that a war reduces the supply of oil, leading to an increase in its price. Everything else remaining constant, what would be the likely effect of this event on the Canadian economy?
A. Shift the AD curve to the left but have no effect on either the SRAS or LRAS curve.
B. Shift the SRAS curve to the right and cause a movement along the AD curve.
C. Shift in both the LRAS and SRAS curves to the left.
D. Shift both the SRAS and LRAS curves to the right.
E. Shift the SRAS curve to the left and cause a reduction in quantity demanded of real GDP.