An increase in the price level, all other things unchanged, shifts the aggregate expenditures curve upwards.

Name: An increase in the price level, all other things unchanged, shifts the aggregate expenditures curve upwards.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

An increase in the price level would actually shift the aggregate expenditures curve downwards, as the higher prices would cause a decrease in consumption, investment, and net exports, leading to a lower level of aggregate expenditures.

An Increase in the Price Level, All Other Things Unchanged