Question

The demand curves for individual goods are typically downward sloping because of the substitution effect and the income effect. In the aggregate demand curve, changes in income cause a:

a.)	movement along the aggregate demand curve, not a shift of the curve.
b.)	shift of the aggregate demand curve, not a movement along the curve.
c.)	movement along the aggregate supply curve, not a shift of the curve.
d.)	shift of the aggregate supply curve, not a movement along the curve.

Answer 1