An increase in the price level
A) increases investment spending,thereby shifting the AD curve to the left
B) does not shift the AD curve
C) causes the government's budget deficit to fall
D) increases investment spending,thereby shifting the AD curve to the right
E) shifts the AS curve outward

Question

Quizplus · Accepted Answer

An increase in the price level results in a movement along the aggregate demand (AD) curve, not a shift of the curve itself.

An Increase in the Price Level