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Question 152

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Figure: Classical Versus Keynesian Macroeconomics Use the following to answer questions : Figure: Classical Versus Keynesian Macroeconomics   -(Figure: Classical Versus Keynesian Macroeconomics)  Look at the figure Classical Versus Keynesian Macroeconomics. According to the Keynesian view, if this economy shifts from AD<sub>1</sub> to AD<sub>2</sub> because of a large decline in investment spending by businesses, the price level will _____, but real GDP will _____. A) increase; decrease B) not change; increase C) increase; not change D) decrease; decrease
-(Figure: Classical Versus Keynesian Macroeconomics) Look at the figure Classical Versus Keynesian Macroeconomics. According to the Keynesian view, if this economy shifts from AD1 to AD2 because of a large decline in investment spending by businesses, the price level will _____, but real GDP will _____.


A) increase; decrease
B) not change; increase
C) increase; not change
D) decrease; decrease

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