On the graph to the right, show the effect on the equilibrium price and GDP using the AD/AS model when there is a drop in export demand by foreign purchasers.

1.) Using the line drawing

tool,

show the change to the AD or AS curve. Properly label your line.

2.) Using the point drawing

tool,

show the economy's new equilibrium. Label the point 'E'.

Carefully follow the instructions above and only draw the required objects.

Using the AD/AS graph, when there is a drop in export demand by foreign purchasers, the price level will