CHANGE IN AGGREGATE EXPENDITURES: The movement along an aggregate demand curve caused by a change in the price level. This should be contrasted directly with a change in aggregate demand. You might also want to review the terms change in quantity demanded and change in demand, as well. A change in aggregate expenditures means that we have identified a NEW level of expenditures on the existing aggregate demand curve. In contrast, a change in aggregate demand means that we have changed, moved, or shifted, the entire aggregate demand curve, the whole range of price levels and aggregate expenditures has changed.

     See also | aggregate demand | aggregate demand curve | aggregate demand determinants | price level | real production | aggregate expenditures | change in aggregate demand | change in quantity demanded | change in demand | market demand |

CHANGE IN AGGREGATE EXPENDITURES, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: October 16, 2018].

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A shock to the short-run aggregate market caused by a decrease in aggregate supply, resulting in and illustrated by a leftward shift of the short-run aggregate supply curve. A decrease in aggregate supply in the short-run aggregate market results in an increase in the price level and a decrease in real production. The level of real production resulting from the shock can be greater or less than full-employment real production.

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