A change in aggregate demand causes a change in income, which in turn induces a change in consumption.

Name: A change in aggregate demand causes a change in income, which in turn induces a change in consumption.
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A change in aggregate demand can shift the AD curve and change the equilibrium level of output and income. This change in income can then affect consumption levels as people may adjust their spending habits based on their income levels.

A Change in Aggregate Demand Causes a Change in Income