Can a change in the price level change aggregate demand?

(a) yes, as the price level rises, aggregate demand falls.
(b) yes, but only under the condition that the real balance effect is operational.
(c) no, only a change in a nonprice factor can change aggregate demand.
(d) no, a change in the price level can only change aggregate supply.
(e) none of the above

Option (C) is correct.

Explanation:

GDP = Government spending + Investment spending + Consumption spending + Net Exports

Changes in price level doesn't change the aggregate demand because aggregate demand can be affected by the changes in the demand of the components of Real GDP,  changes in the consumption spending by the consumers, changes in the investment spending, changes in the government expenditure and the difference between exports and imports.

If any of the component increases, then there is a rightward shift in the aggregate demand curve and vice versa.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o