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Question 51

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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>2</sub> to AD<sub>1</sub>, 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
-(Figure: Classical Versus Keynesian Macroeconomics) Look at the 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

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