Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point W. The AE =Y price level is Po . Now, suppose there is an exogenous AE2 rise in the price level to P, Which of the following AED statements describes the likely macroeconomic effects? AE Desired Aggregate Expenditure OA. The AE curve shifts to AE, a new equilibrium is W. established at point V. and the AD curve shifts U from AD to AD', and equilibrium moves from 45 point D to point B. Y Yo Y2 O B. The AE curve shifts to AE,, a new equilibrium is Real GDP established at point U, and the economy moves from point D to point A along AD O C. The AE curve shifts to AE2, a new equilibrium is established at point V, and the economy moves B Price Level from point D to point G along AD". DE O D. The AE curve shifts to AE, , a new equilibrium is AD PNG established at point U, and the AD curve shifts SAD from AD" to AD', and equilibrium from point D to Y Yo Y point B. Real GDP