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AE=Y - AE2 W. AFO Desired Aggregate Expenditure - - AEI Y Yo Y2 Real GDP P1 Price Level B P2 G AD2 `ADI ADO

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AE=Y - AE2 W. AFO Desired Aggregate Expenditure - - AEI Y Yo Y2 Real GDP P1 Price Level B P2 G AD2 `ADI ADO Y1 Yo Y2 Real GDP 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 W. The price level is Po. Other things being equal, exogenous changes in the price level will cause Select one: O a. shifts of the AE curve and shifts of the AD curve

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