How would an economist use an aggregate expenditure line to trace out a single aggregate demand curve?
A) by letting changes in autonomous spending shift the aggregate expenditure line
B) by letting changes in the price level shift the aggregate expenditure line
C) by letting changes in the level of income shift the aggregate expenditure line
D) by letting changes in real GDP shift the aggregate expenditure line

Question

How would an economist use an aggregate expenditure line to trace out a single aggregate demand curve?  
A) by letting changes in autonomous spending shift the aggregate expenditure line 
B) by letting changes in the price level shift the aggregate expenditure line 
C) by letting changes in the level of income shift the aggregate expenditure line 
D) by letting changes in real GDP shift the aggregate expenditure line

Quizplus · Accepted Answer

An economist would use changes in the price level to shift the aggregate expenditure line, which in turn traces out a single aggregate demand curve. This is because the aggregate demand curve shows the quantity of goods and services demanded at different price levels, and changes in the price level are what cause movement along this curve.

How Would an Economist Use an Aggregate Expenditure Line to Trace