Shifts in the aggregate-demand curve can cause fluctuations in
a. the level of prices, but not in the level of output.
b. the level of output, but not in the level of prices.
c. the level of output and in the level of prices.
d. neither the level of output nor the level of prices.

The correct answer is C) the level of output and in the level of prices.

Shifts in the aggregate demand curve can cause fluctuations in the level of output and the level of prices.

In economics, the aggregate demand curve represents the sum of all goods and services demanded by the economy at different price levels. The aggregate demand curve is the graph that shows how many services and products companies and the government are willing to purchase. Its descending slopping describes the inverse relationship between the quantity demanded and the price.

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