An increase in the price level creates a
A) movement along the aggregate demand curve.
B) wealth effect.
C) decrease in consumption expenditures.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

An increase in the price level can lead to a movement along the aggregate demand curve due to the wealth effect, which decreases the real value of money, leading to a decrease in consumption expenditures.

An Increase in the Price Level Creates a