Which one of the following variables is not held constant along a given aggregate demand curve?
A)fiscal policy
B)real income
C)tax rates
D)expectations about inflation
E)the price level

Question

Quizplus · Accepted Answer

The price level is the variable that changes along the aggregate demand curve, as it represents the level of prices for goods and services demanded by consumers at any given level of output. Fiscal policy, real income, tax rates, and expectations about inflation are all assumed to be held constant along the aggregate demand curve, as they are considered exogenous variables that do not change in response to changes in the price level.

Which One of the Following Variables Is Not Held Constant