If consumption changes because of a change in the price level,then the
A) economy moves from one point on an AD curve to another point on the same curve.
B) AD curve shifts.
C) economy moves from one point on a SRAS curve to another point on the same curve.
D) SRAS curve shifts.
E) none of the above

Question

Quizplus · Accepted Answer

A change in consumption due to a change in price level would cause a movement along the same AD curve, as consumption is one of the components of aggregate demand. The other choices are not directly related to changes in consumption due to price levels.

If Consumption Changes Because of a Change in the Price