Can a Change in the Price Level Cause the Aggregate

question 193

Multiple Choice

Can a change in the price level cause the aggregate demand curve to shift?

• A) Yes,as the price level rises,aggregate demand shifts leftward.
• B) Yes,but only under the condition that the real balance effect is operational.
• C) No,only a change in a factor other than the price level can shift the aggregate demand curve.
• D) No,a change in the price level can only shift the aggregate supply curve.
• E) none of the above

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