Mauritius, an Island Off the Coast of Africa, Competes with Other

Mauritius, an island off the coast of Africa, competes with other countries producing goods with low-skilled labor. In 2006, it was reported that its ʺ... factories have been exposed to ... competition from China, India and other Asian mass producers.ʺ As a result, ʺthe main export industry has seen a 30 per cent reduction in volume ...
The decrease in exports will cause __________and the price level will__________ .

A) an upward shift in the AE curve; increase as the AD curve shifts rightward in the long run
B) a leftward shift in the AD curve; rise in the long run as goods become more scarce
C) a downward shift in the AE curve; decrease as the AD curve shifts leftward in the short run
D) a leftward shift in the AD curve; fall in the short run and rise in the long run