Which of the following will not shift the aggregate demand curve?
A)changes in income
B)changes in wealth
C)changes in expected future prices
D)changes in the overall price level

Question

Quizplus · Accepted Answer

Changes in the overall price level will not shift the aggregate demand curve because the price level is already accounted for in the aggregate demand curve. The aggregate demand curve represents the demand for goods and services at various price levels, so a change in the overall price level would result in a movement along the curve rather than a shift of the curve. Changes in income, wealth, and expected future prices can shift the aggregate demand curve.

Which of the Following Will Not Shift the Aggregate Demand