An increase in the price level will
A)shift the aggregate demand curve to the left.
B)shift the aggregate demand curve to the right.
C)move the economy up along a stationary aggregate demand curve.
D)move the economy down along a stationary aggregate demand curve.

Question

Quizplus · Accepted Answer

An increase in the price level does not shift the aggregate demand curve; instead, it moves the economy up along a stationary aggregate demand curve, reflecting a decrease in the quantity of goods and services demanded as the price level rises.

An Increase in the Price Level Will