Leftward shift of the aggregate demand curve

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If the price level increases, the real value of household money holdings falls. This will result in a downward shift of aggregate expenditures and a leftward shift of the aggregate demand curve.

Reference no: EM13739678

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Leftward shift of the aggregate demand curve : If the price level increases, the real value of household money holdings falls. This will result in a downward shift of aggregate expenditures and a leftward shift of the aggregate demand curve.

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