What is the result of an increase in the price level?
A) This will shift the aggregate demand curve to the left.
B) This will shift the aggregate demand curve to the right.
C) This will move the economy down along a stationary aggregate demand curve.
D) This will move the economy up along a stationary aggregate demand curve.

Question

Quizplus · Accepted Answer

An increase in the price level results in a movement up along a stationary aggregate demand curve, as it reflects a higher price level with the same level of aggregate demand.

What Is the Result of an Increase in the Price