A change in _________creates a movement along the aggregate demand curve but does not shift the aggregate demand curve.
A) the price level
B) tax rates
C) fiscal policy
D) None of the above because they all shift the aggregate demand curve.

Question

Quizplus · Accepted Answer

A change in the price level creates a movement along the aggregate demand curve, as the quantity demanded of goods and services changes in response to the change in price. However, the aggregate demand curve itself is determined by factors such as fiscal and monetary policy, and changes in these factors can shift the curve. Tax rates and fiscal policy are examples of factors that can shift the aggregate demand curve.

A Change in _________Creates a Movement Along the Aggregate Demand