An increase in the price level in the aggregate expenditures model would result in a reduction in aggregate expenditure but would not shift the AD curve.
The aggregate expenditure model refers to a model that determines the amount of real GDP that will result when aggregate demand (AD) and aggregate expenditures (AE) in the economy are equal.
In the aggregate expenditures model, an increase in the price level would result in a reduction in aggregate spending but would not cause the AD curve to shift.
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