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Use the following to answer questions: 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 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)  rise;not change C)  not change;rise D)  fall;fall
-(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:

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