An increase in the price level shifts the aggregate demand curve to the left.

Name: An increase in the price level shifts the aggregate demand curve to the left.
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Question

Quizplus · Accepted Answer

An increase in the price level typically leads to a movement along the aggregate demand curve, not a shift. A shift in the aggregate demand curve is caused by factors other than the price level, such as changes in consumer confidence, government spending, or investment.

An Increase in the Price Level Shifts the Aggregate Demand