The effect of an increase in the price level on aggregate demand is represented by a
A)shift to the right of the aggregate demand curve.
B)shift to the left of the aggregate demand curve.
C)movement to the left along a given aggregate demand curve.
D)movement to the right along a given aggregate demand curve.

Question

Quizplus · Accepted Answer

An increase in the price level causes a movement to the left along a given aggregate demand curve, as higher prices typically reduce the quantity of goods and services demanded.

The Effect of an Increase in the Price Level on Aggregate