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

Question

Quizplus · Accepted Answer

A change in the price level causes a movement along the aggregate demand curve. It does not shift the curve, as the quantity demanded changes due to changes in the price level, rather than any other factors affecting aggregate demand. The other options listed would cause a shift in the aggregate demand curve.

Which of the Following Produces a Movement Along the Aggregate