State how each of the following affect the aggregate demand curve

a. The price level increases.
b. Consumers expect higher inflation in the future.
c. The exchange rate rises.
d. Foreign income decreases.

What will be an ideal response?


a. There is a movement upward along the aggregate demand curve. The aggregate demand curve does not shift.
b. The aggregate demand curve shifts rightward.
c. The aggregate demand curve shifts leftward.
d. The aggregate demand curve shifts leftward.

Economics

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