Which of the following does not account for a movement along a given aggregate demand curve?
A) The wealth effect
B) The interest-rate effect
C) The real-balance effect
D) The international trade effect
E) The effect of an increase in government spending

Question

Quizplus · Accepted Answer

An increase in government spending would shift the aggregate demand curve outwards, rather than causing a movement along an existing curve. The wealth effect, interest-rate effect, real-balance effect, and international trade effect all refer to factors that can cause movements along a given aggregate demand curve.

Which of the Following Does Not Account for a Movement