Il' Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point W. The price level is P0- Now, suppose there is an exogenous rise in the price level to P1. Which of the following statements describes the likely macroeconomic effects? 0 A. The AE curve 'shifts to AE1, a new equilibrium is established at pointM- and the AD curve shiftsfrom A0015; , A01, and equilibrium from point B ta; 5" point D. , O B. The AE curve shifts to AE1, a new; equilibrium is established at point V, ' and the economy moves from point B to point A along ADO. (Q) C. The AE curve shifts to AE2, a new equilibrium is established at point U, and the economy moves from point Desired Aggregate Expenditure Price Level