FIGURE $8-1$

Refer to Figure $8-1.$ Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V $.$ The price level is $P_0.$

Other things being equal, exogenous changes in the price

A$.$ movernent along the aggregale expenditure curve $A{E}^0$ and shifts of the AD curve.

B$.$ shifts of the AE curve and movement along the aggregate demand curve $A{D}^0.$

C$.$ movement along the aggregate expenditure curve $A{E}^0$ and movement along the aggregate demand curve $AD.$

D$.$ shifts of the AE curve and shifts of the $AD$ curve.

E$.$ no change in either the $AE$ curve or the level will cause AD curve.