Which of the following changes while moving along the aggregate demand curve?
A) the amount of money in the economy
B) future profits from investment projects
C) the price level
D) future incomes of households

Question

Quizplus · Accepted Answer

When moving along the aggregate demand curve, the only variable that changes is the price level, as this represents the inverse relationship between price level and real GDP demanded. The amount of money in the economy, future profits from investment projects, and future incomes of households are all determinants of aggregate demand that would shift the entire curve.

Which of the Following Changes While Moving Along the Aggregate