An increase in the price level will ________ the real value of wealth and,as a result,there will be ________ the aggregate demand curve.
A) reduce; a leftward shift of
B) reduce; an upward movement along
C) increase; a rightward shift of
D) increase; an upward movement along
E) have no effect on; no change in

Question

Quizplus · Accepted Answer

An increase in the price level reduces the real value of wealth, leading to a decrease in consumption and a movement upward along the aggregate demand curve, not a shift.

An Increase in the Price Level Will ________ the Real