FIGURE 23-1 Refer to Figure 23-1

Multiple Choice

FIGURE 23-1 Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is P₀.Other things being equal,exogenous changes in the price level will cause

A) movement along the aggregate expenditure curve AE⁰ and shifts of the AD curve.
B) movement along the aggregate expenditure curve AE⁰ and movement along the aggregate demand curve AD⁰.
C) shifts of the AE curve and shifts of the AD curve.
D) shifts of the AE curve and movement along the aggregate demand curve AD⁰.
E) no change in either the AE curve or the AD curve.