A movement along a given aggregate demand curve is caused by a change in
Correct answer: A. The general price level
- A. The general price level
- B. Consumer expectations
- C. Government purchases
- D. The money supply
Explanation
A change in the general price level changes the quantity of real output demanded and produces movement along the existing aggregate demand curve. Changes in government purchases, the money supply, or expectations shift the entire curve.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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