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 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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