Which one of the following factors will not shift the aggregate demand curve?
A)an increase in the interest rate
B)an increase in the expected inflation rate
C)an increase in the price level
D)an increase in expected future profits
E)an increase in the quantity of money

Question

Quizplus · Accepted Answer

Changes in the price level do not shift the aggregate demand curve. Instead, they cause movements along the curve. Factors that can shift the AD curve include changes in interest rates (A), expected inflation rates (B), expected future profits (D), and the quantity of money (E).

Which One of the Following Factors Will Not Shift the Aggregate