In Case of Classical Model, Increase in Aggregate Expenditure Would

Multiple Choice

In case of classical model, increase in aggregate expenditure would:

A) shift the aggregate demand curve upward leading to increase in real GDP and prices.
B) shift the aggregate demand curve downward leading to increase in real GDP and prices.
C) shift the aggregate demand curve upward leading to decrease in real GDP and prices.
D) shift the aggregate demand curve downward leading to decrease in real GDP and prices.
E) shift the aggregate demand curve upward leading to increase in prices and no change in real GDP.