How will an increase in the price level affect the aggregate demand curve?
A) It will cause the aggregate demand curve to shift to the left.
B) It will cause the aggregate demand curve to shift to the right.
C) It will cause a movement up to the left along the aggregate demand curve.
D) It will cause a movement down to the right along the aggregate demand curve.

Question

How will an increase in the price level affect the aggregate demand curve?  
A) It will cause the aggregate demand curve to shift to the left. 
B) It will cause the aggregate demand curve to shift to the right. 
C) It will cause a movement up to the left along the aggregate demand curve. 
D) It will cause a movement down to the right along the 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 a movement up and to the left along the aggregate demand curve, not a shift of the curve itself.

How Will an Increase in the Price Level Affect the Aggregate