Holding other factors constant, an increase in the price level causes the aggregate demand curve to shift to the left.

Name: Holding other factors constant, an increase in the price level causes the aggregate demand curve to shift to the left.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

An increase in the price level causes a movement along the aggregate demand curve, not a shift. A shift in the aggregate demand curve is caused by changes in factors other than the price level, such as changes in consumer confidence or fiscal policy.

Holding Other Factors Constant, an Increase in the Price Level