A shift in the aggregate expenditure curve as a result of a rise in the price level
A)shifts the aggregate demand curve rightward.
B)creates a movement up along the aggregate demand curve.
C)creates a movement down along the aggregate demand curve.
D)has no effect on the aggregate demand curve.
E)shifts the aggregate demand curve leftward.

Question

Quizplus · Accepted Answer

A rise in the price level does not shift the aggregate demand curve; instead, it causes a movement along the curve. Specifically, it results in a movement up along the curve as the quantity of goods and services demanded decreases at higher price levels.

A Shift in the Aggregate Expenditure Curve as a Result