Economics.

How does a change in the price level influence the AE curve and the AD curve? Use the graphs to answer this question. Equilibrium expenditure is $12 trillion and the price level is 110 Suppose the price level falls to 90 and the new equilibrium expenditure is $13 trillion. In the left graph, draw the AE curve that shows the effect of this event. Label it. Draw a point to show the new equilibrium expenditure. In the right graph, draw a point on the AD curve at the new equilibrium real GDP and price level. Draw an arrow on the curve that shows the effect of the fall in price level. 25 Draw only the objects specified in the question. 16- Aggregate expenditure (tr. of 2007 dolars 160- Price level (GDP deflator. 2007=109 45 degree line 15- 140- 14- 120- 13- AEd 12- 100- 1 1- 80- AD 10 15 18 60 9 10 12 14 15 16 Real GDP (trillions of 2007 dollars Real GDP (trillions of 2007 dollars)