Everything else remaining the same, if aggregate demand changes, the amount by which the AD curve shifts depends on
A)changes in induced expenditure.
B)potential GDP.
C)the change in the price level.
D)the change in aggregate supply.
E)the change in autonomous expenditure and the multiplier.

Question

Quizplus · Accepted Answer

The amount by which the AD curve shifts depends on the change in autonomous expenditure and the multiplier. This is because the multiplier effect amplifies the initial change in autonomous expenditure, causing a larger shift in aggregate demand. The other options may also have an impact on aggregate demand, but they are not the sole determinant of the amount by which the AD curve shifts.

Everything Else Remaining the Same, If Aggregate Demand Changes, the Amount