An aggregate demand curve
A) shifts to the right when the price level increases and to the left when the price level falls.
B) shifts to the right when any non-price-level factor increases total planned real spending.
C) shifts to the right when population decreases and shifts to the left when population increases.
D) does not shift, unlike individual or market demand curves.

Question

Quizplus · Accepted Answer

An aggregate demand curve shifts to the right when any non-price-level factor increases total planned real spending. This can include changes in consumer and business confidence, government spending, and net exports. Changes in population do not typically have a direct effect on aggregate demand. The curve does shift, unlike individual or market demand curves.

An Aggregate Demand Curve