Which of the following will not cause a change in aggregate demand?
A)an increase in consumer wealth
B)an increase in the amount of investment demanded by firms at each price level
C)an increase in an economy's price level
D)an increase in the price level of a foreign economy

Question

Quizplus · Accepted Answer

An increase in an economy's price level will not cause a change in aggregate demand as it only reflects a change in the overall level of prices in the economy and does not affect the factors that determine aggregate demand such as consumer spending, investment, government spending, and net exports.

Which of the Following Will Not Cause a Change in Aggregate