-Refer to Exhibit 8-3.Which of the following could not have caused a shift in aggregate demand from AD₁ to AD₂? A) a change in the price level B) an increase in wealth C) an increase in foreign real national income D) a decrease in personal income taxes E) a decrease in business taxes

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Quizplus · Accepted Answer

A change in the price level would not cause the aggregate demand curve to shift; it would cause a movement along the curve. Changes in aggregate demand are caused by factors like changes in wealth, foreign income, and taxes, not by changes in the price level itself.