The aggregate demand curve shifts when any of the following factors change EXCEPT
A)foreign income.
B)the price level.
C)monetary policy.
D)expectations about the future.
E)fiscal policy.

Question

Quizplus · Accepted Answer

The aggregate demand curve shifts when factors such as foreign income, monetary policy, expectations about the future, and fiscal policy change. However, the price level does not shift the aggregate demand curve, as it is represented on the vertical axis of the aggregate demand and aggregate supply model. Instead, the price level movement along the aggregate demand curve is represented as a movement along the curve, not a shift.

The Aggregate Demand Curve Shifts When Any of the Following