The aggregate demand curve will not shift to the left if
A) people become pessimistic about the future of the economy.
B) there is a decrease in foreign income.
C) the government decreases spending.
D) domestic price levels increase.
E) foreign price levels decrease.

Question

Quizplus · Accepted Answer

An increase in domestic price levels does not shift the aggregate demand curve; instead, it causes movement along the curve. Shifts in the aggregate demand curve are caused by changes in non-price level factors, such as consumer confidence, government spending, and foreign economic conditions.

The Aggregate Demand Curve Will Not Shift to the Left