]Which of the following would not cause the AD curve to shift?
A) A change in the money supply
B) The public's expectations of a fall in the interest rate
C) A change in aggregate expenditure caused by a change in the price level
D) A change in fiscal policy
E) A change in autonomous consumption spending.

Question

Quizplus · Accepted Answer

A change in aggregate expenditure caused by a change in the price level would cause movement along the AD curve, not a shift of the entire curve. The other options would cause the AD curve to shift. A change in the money supply and fiscal policy would shift the AD curve directly, while the public's expectations of a fall in the interest rate and a change in autonomous consumption would shift the AD curve indirectly through their effects on aggregate demand.

]Which of the Following Would Not Cause the AD Curve