Anything that causes a movement along the aggregate expenditure curve will also cause a shift of the aggregate demand curve.

Question

Quizplus · Accepted Answer

Anything that causes a movement along the aggregate expenditure curve, such as a change in the price level, will not cause a shift of the aggregate demand curve. Only factors that affect aggregate demand independently, such as changes in consumer confidence or government policies, will shift the aggregate demand curve.

Anything That Causes a Movement Along the Aggregate Expenditure Curve