A change in aggregate expenditures for reasons other than the price level will shift the aggregate demand curve.

Question

Quizplus · Accepted Answer

A change in aggregate expenditures, such as changes in consumption, investment, government spending, or net exports, will shift the aggregate demand curve. This is because aggregate demand represents the total spending in the economy, and any changes in spending will affect the overall demand for goods and services, regardless of the price level.

A Change in Aggregate Expenditures for Reasons Other Than the Price