Which of the following is true about the relationship between the aggregate dema

Question

Which of the following is true about the relationship between the aggregate demand curve and the aggregate expenditure line?

                If the aggregate expenditure line shifts while prices are constant, the resulting change in equilibrium output demanded can be depicted as a movement along the aggregate demand curve.

                If the aggregate expenditure line shifts while prices are constant, the resulting change in equilibrium output demanded can be depicted as a shift of the aggregate demand curve.

                Any time the aggregate expenditure line shifts, the aggregate demand curve shifts as well.

                Any time there is a movement along the aggregate expenditure curve, there is movement along the aggregate demand curve as well.

                Any time the price level changes, the aggregate demand curve shifts.

Explanation / Answer

If the aggregate expenditure line shifts while prices are constant, the resulting change in equilibrium output demanded can be depicted as a shift of the aggregate demand curve.

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