Multiple Choice
Use the following to answer questions:
-(Figure: Classical Versus Keynesian Macroeconomics) Refer to Figure: Classical Versus Keynesian Macroeconomics. According to the classical 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) rise; not change
C) not change; rise
D) fall; fall
Correct Answer:

Verified
Correct Answer:
Verified
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