A shift in the aggregate expenditure curve as a result of an increase in the price level results in a
A) leftward shift in the aggregate demand curve.
B) rightward shift in the aggregate demand curve.
C) movement up along the aggregate demand curve.
D) movement down along the aggregate demand curve.

Question

Quizplus · Accepted Answer

An increase in the price level leads to a movement up along the aggregate demand curve, not a shift of the curve itself.

A Shift in the Aggregate Expenditure Curve as a Result