A change in ________ creates a movement along the aggregate demand curve but does not shift the aggregate demand curve.
A) tax rates
B) the price level
C) fiscal policy
D) None of the above because they all shift the aggregate demand curve.

Question

Quizplus · Accepted Answer

A change in the price level results in a movement along the aggregate demand curve, as it reflects a change in the quantity demanded at different price levels, not a shift in the overall demand. Changes in tax rates and fiscal policy would shift the aggregate demand curve by affecting overall demand.

A Change in ________ Creates a Movement Along the Aggregate