Which of the following produces a movement along the aggregate demand curve and does not shift the aggregate demand curve?
A) A change in expectations about the future
B) A change in monetary policy
C) A change in the price level
D) A change in foreign incomes
E) A change in government expenditures on goods and services

Question

Quizplus · Accepted Answer

A movement along the aggregate demand curve is caused by a change in the price level, which affects the quantity of goods and services demanded. Changes in expectations, monetary policy, foreign incomes, and government expenditures are factors that shift the aggregate demand curve, not move along it.

Which of the Following Produces a Movement Along the Aggregate