A change in the price level does not shift the aggregate demand curve.

Question

Quizplus · Accepted Answer

The aggregate demand curve represents the total demand for goods and services in an economy at different price levels. A change in the price level causes a movement along the aggregate demand curve, not a shift of the curve. Shifts in the aggregate demand curve are caused by changes in non-price level factors such as consumer confidence, government spending, and investment levels.

A Change in the Price Level Does Not Shift the Aggregate