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Which one of the following would not shift the aggregate demand curve?

A) a change in the price level
B) depreciation of the international value of the dollar
C) a decline in the interest rate at each possible price level
D) an increase in personal income tax rates

1 Answer

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Final answer:

The correct answer is (B) depreciation of the international value of the dollar.

Step-by-step explanation:

The correct answer is (B) depreciation of the international value of the dollar. A change in the price level (option A) will shift the aggregate demand (AD) curve, as it represents a change in the overall demand for goods and services. A decline in the interest rate at each possible price level (option C) will also shift the AD curve, as it affects consumption and investment. An increase in personal income tax rates (option D) will also shift the AD curve, as it affects consumers' disposable income. However, a depreciation of the international value of the dollar (option B) will not directly shift the AD curve. It would stimulate aggregate demand by making exports cheaper and imports more expensive, but it would not directly affect overall demand.

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