-In the figure above, as the price level increases the aggregate demand curve will
A)shift from AD₁ to AD₃.
B)shift from AD₁ to AD₂.
C)not shift, but the aggregate demand curve will change so that it is positively sloped.
D)not shift.
E)shift from AD₁ to AD₃ and then back to AD₁ .

Question

-In the figure above, as the price level increases the aggregate demand curve will
A)shift from AD₁ to AD₃. 
B)shift from AD₁ to AD₂. 
C)not shift, but the aggregate demand curve will change so that it is positively sloped. 
D)not shift. 
E)shift from AD₁ to AD₃ and then back to AD₁ .

Quizplus · Accepted Answer

The aggregate demand curve does not shift due to changes in the price level; instead, it represents the relationship between the price level and the quantity of goods and services demanded, so it moves along the curve.

-In the Figure Above, as the Price Level Increases the Aggregate