Which of the following is not held constant along a dynamic aggregate demand curve?
A) the inflation target
B) the natural rate of output
C) the demand shock
D) the money supply

Question

Quizplus · Accepted Answer

Along a dynamic aggregate demand curve, the money supply is not held constant. Changes in the money supply can shift the AD curve, leading to changes in inflation and output. The inflation target, natural rate of output, and demand shock are all held constant along the AD curve, assuming other factors remain constant.

Which of the Following Is Not Held Constant Along a Dynamic