Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
-(Figure: Classical Versus Keynesian Macroeconomics) Refer to Figure: Classical Versus Keynesian Macroeconomics. According to the Keynesian view, if this economy shifts from AD₂ to AD₁, perhaps because of a large increase in government spending, the price level will _____ and real GDP will _____.

A) rise; fall
B) not change; rise
C) rise; not change
D) rise; rise