Which of these would cause a movement along a country's aggregate demand curve, but not a shift in its aggregate demand curve?
A) rise in the value of stocks in a country's stock market
B) fall in real interest rates
C) increase in a country's CPI, meaning that household income does not buy as much
D) expectation among business owners for profits to increase so that they make more investments

Question

Quizplus · Accepted Answer

An increase in a country's Consumer Price Index (CPI) reflects higher prices, which reduces the real value of household income, leading to a movement along the aggregate demand curve as consumers adjust their spending. This does not shift the curve itself but represents a movement along it due to changes in the price level.

Which of These Would Cause a Movement Along a Country's