Suppose That an Economy Suffers a Doubling in the Price

Suppose that an economy suffers a doubling in the price it pays for energy in 2006. Let the price shock be accommodated in 2005 and 2007. If the resulting inflation is met with tight monetary policy in 2008 and the expectations-augmented price adjustment set expected inflation equal to last year's inflation, then you would expect 2008 to be a year of

A) inflation and unemployment higher than in 2006.
B) inflation and unemployment lower than in 2006.
C) inflation higher than it was in 2006, accompanied by lower unemployment.
D) inflation lower than it was in 2006, accompanied by higher unemployment.
E) unpredictable inflation and unemployment.