A country imports more oil than it exports. Over the past year, world oil prices have increased. If every other factor stays unchanged, what effect is this likely to have on inflation, the trade balance and unemployment in this country?
- Ainflation decrease; trade balance no change; unemployment increase
- Binflation increase; trade balance improve; unemployment decrease
- Cinflation increase; trade balance worsen; unemployment increase
- Dinflation decrease; trade balance no change; unemployment decrease