Which of the following does NOT shift the aggregate demand curve?
A) a decrease in the quantity of money
B) an increase in investment
C) an increase in the price level
D) a decrease in taxes

Question

Quizplus · Accepted Answer

An increase in the price level does not shift the aggregate demand curve; it moves along the curve. Shifts in the aggregate demand curve are caused by changes in non-price level factors such as money supply, investment, and taxes.

Which of the Following Does NOT Shift the Aggregate Demand