At a given price level, anything that changes the amount of total purchases in the economy will cause the aggregate demand curve to shift.

Question

Quizplus · Accepted Answer

Any factor that affects consumer spending, investment spending, government spending, or net exports will shift the aggregate demand curve. This includes changes in consumer confidence, interest rates, government policies, and the exchange rate. Any of these factors can cause a change in total purchases within the economy and therefore shift the aggregate demand curve.

At a Given Price Level, Anything That Changes the Amount