An Increase in the Price Level Shifts the Aggregate Expenditure

question 187

Essay

An increase in the price level shifts the aggregate expenditure curve downward and results in a movement along the aggregate demand curve. Why does an increase in the price level result in a shift in the aggregate expenditure curve rather than a movement along it?

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Definitions:

Contagious

Capable of being transmitted from one individual to another through direct or indirect contact.

Fatal

Resulting in death; having a deadly or lethal outcome.

SARS

Severe Acute Respiratory Syndrome, a contagious respiratory illness caused by a virus in the coronavirus family that first emerged in 2002-2003.

Contagious

Able to be passed from one person to another via direct or indirect contact.