Multiple Choice
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 classical view, if this economy shifts from AD1 to AD2, perhaps because of a large decline in investment spending by businesses, the price level will _____ and real GDP will _____.
A) rise; fall
B) not change; increase
C) fall; not change
D) fall; fall
Correct Answer:

Verified
Correct Answer:
Verified
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