-In the figure above, as the price level increases the aggregate demand curve will
A) shift from AD₁ to AD₃.
B) shift from AD₁ to AD₂.
C) not shift but the aggregate demand curve will change its slope will change so that it is positively sloped.
D) not shift.
E) shift from AD₁ to AD₃ and then back to AD₁ .

Question

-In the figure above, as the price level increases the aggregate demand curve will
A) shift from AD₁ to AD₃. 
B) shift from AD₁ to AD₂. 
C) not shift but the aggregate demand curve will change its slope will change so that it is positively sloped. 
D) not shift. 
E) shift from AD₁ to AD₃ and then back to AD₁ .

Quizplus · Accepted Answer

The aggregate demand curve does not shift due to changes in the price level; instead, it represents the relationship between the price level and the quantity of goods and services demanded. Changes in the price level result in movements along the curve, not shifts of the curve itself.

-In the Figure Above, as the Price Level Increases the Aggregate