How will an increase in the price level affect the aggregate demand curve?
A) The aggregate demand curve will shift leftward.
B) The aggregate demand curve will shift rightward.
C) Upward movement will occur along a particular aggregate demand curve.
D) Downward movement will occur along a particular aggregate demand curve.

Question

How will an increase in the price level affect the aggregate demand curve?  
A) The aggregate demand curve will shift leftward. 
B) The aggregate demand curve will shift rightward. 
C) Upward movement will occur along a particular aggregate demand curve. 
D) Downward movement will occur along a particular aggregate demand curve.

Quizplus · Accepted Answer

An increase in the price level results in a decrease in the quantity of goods and services demanded, which is represented by an upward movement along a given aggregate demand curve, not a shift of the curve itself.

How Will an Increase in the Price Level Affect the Aggregate