A rate-adaptive pacemaker and a method for its operation in which the response factor for a minute ventilation sensor or other type of exertion level sensor is automatically set during a parameter adjustment mode that utilizes an activity level measurement to determine when the patient is at a target activity level with which is associated an appropriate target pacing rate. In a preferred embodiment, the target activity level corresponds to casual walking (e.g., 2 mph at a 4% grade) with a target pacing rate selected as appropriate for that level of activity in the individual patient.
