Which of the following does NOT shift the aggregate demand curve?
A) a decrease in the quantity of money
B) an increase in people's expected future incomes
C) an increase in the price level
D) an increase in current foreign income

Question

Quizplus · Accepted Answer

An increase in the price level does not shift the aggregate demand curve; instead, it represents a movement along the curve. Shifts in the aggregate demand curve are caused by changes in non-price level factors, such as changes in monetary policy, expectations of future income, and foreign income levels.

Which of the Following Does NOT Shift the Aggregate Demand