An aggregate demand curve
A)shifts to the right when the price level increases and to the left when the price level falls.
B)shifts to the right when any non-price-level change that increases aggregate spending occurs.
C)shifts to the right when population decreases and shifts to the left when population increases.
D)does not shift,unlike individual or market demand curves.

Question

Quizplus · Accepted Answer

An aggregate demand curve shifts to the right when any non-price-level change that increases aggregate spending occurs, such as an increase in consumer confidence or government spending. It does not shift based on changes in population or solely on changes in the price level. Therefore, option A and C are incorrect. Option D is incorrect as well, as an aggregate demand curve can shift.

An Aggregate Demand Curve