As the price level increases, the amount of goods and services that consumers, businesses, and governments desire to purchase will change.How will this be reflected in the aggregate demand curve?
A) as a leftward movement of the aggregate demand curve
B) as a rightward movement of the aggregate demand curve
C) as a movement upward along the aggregate demand curve
D) as a movement downward along the aggregate demand curve

Question

As the price level increases, the amount of goods and services that consumers, businesses, and governments desire to purchase will change.How will this be reflected in the aggregate demand curve?  
A) as a leftward movement of the aggregate demand curve 
B) as a rightward movement of the aggregate demand curve 
C) as a movement upward along the aggregate demand curve 
D) as a movement downward along the aggregate demand curve

Quizplus · Accepted Answer

As the price level increases, the quantity of goods and services demanded decreases, resulting in an upward movement along the aggregate demand curve.

As the Price Level Increases, the Amount of Goods and Services