Which of the following will not cause a change in aggregate demand?
A) An increase in consumer wealth
B) An increase in the amount of investment demanded by firms at each price level
C) An increase in an economy's price level
D) An increase in the price level of a foreign economy

Question

Quizplus · Accepted Answer

An increase in an economy's price level would only cause a movement along the aggregate demand curve, as it represents a change in the price level, not a shift in the aggregate demand curve. A shift in aggregate demand is caused by factors that affect consumption, investment, government spending, and net exports. Option A represents an increase in consumption, which would shift aggregate demand to the right. Option B represents an increase in investment, which would also shift aggregate demand to the right. Option D represents an increase in the price level of a foreign economy, which would decrease net exports and shift aggregate demand to the left.

Which of the Following Will Not Cause a Change in Aggregate