Any change in the price level will result in a

Question

Quizplus · Accepted Answer

Any change in the price level, such as an increase in inflation, will result in a movement along the AD (Aggregate Demand) curve because it affects the quantity of real GDP (Y) demanded. The AE (Aggregate Expenditure) curve will shift if there is a change in any of the components of AE (C + I + G + NX), such as a change in consumer confidence, government spending, or exports. However, a change in the price level would not directly cause a shift in the AE curve, only a movement along it.

Any Change in the Price Level Will Result in a