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 "... factories have been exposed to ... competition from China, India and other Asian mass producers." As a result, "the main export industry has seen a 30 per cent reduction in volume ..." www.ft.com, 3/13/2006
The decrease in exports will cause ________ and the price level will ________.

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