Many U.S companies import raw materials and other inputs used in the production process from countries around the world. Some of these goods travel through the Suez Canal on their way to the U.S. However, traffic through the Suez Canal has been threated for several months by Houthi rebels from Yemen. As a result, some cargo ships have been forced to take an alternative route around South Africa's Cape of Good Hope, which significantly increases the cost of transportation and ultimately the cost of these raw materials and inputs. What impact would we expect this to have on the U.S. macroeconomy?
a Real GDP, employment, and the price level would increase.
b Real GDP, employment, and the price level would decrease.
c Real GDP and employment would decrease, but the price level would increase.