A(n) _____ will shift the aggregate demand curve.
A) interest rate effect of an aggregate price level change
B) wealth effect of an aggregate price level change
C) demand expectation
D) demand shock

Question

Quizplus · Accepted Answer

A demand shock, which is an unexpected event that affects aggregate demand, can shift the aggregate demand curve. This can be caused by factors such as changes in consumer or business confidence, government policy, or international events. The other choices (A, B, and C) describe effects of changes in the aggregate price level on aggregate demand, but do not necessarily shift the aggregate demand curve itself.

A(n) _____ Will Shift the Aggregate Demand Curve