An economic change that does not shift the aggregate demand curve is a change in:
A) the money supply.
B) the investment function.
C) the price level.
D) taxes.

Question

Quizplus · Accepted Answer

A change in the money supply (A) would shift the aggregate demand curve as it affects overall spending in the economy, and a change in the investment function (B) would also shift the curve as it affects investment spending. Taxes (D) would also shift the curve as they affect both consumption and investment spending. However, a change in the price level (C) would not shift the aggregate demand curve as it is already incorporated into the curve - a change in the price level would result in a movement along the existing curve.

An Economic Change That Does Not Shift the Aggregate Demand