In the Simple Keynesian Model,an Increase in Aggregate Demand Leads

question 15

Multiple Choice

In the simple Keynesian model,an increase in aggregate demand leads to an increase in

• A) Real GDP and the price level.
• B) the price level and no change in Real GDP for levels of Real GDP below Natural Real GDP.
• C) the price level and a decrease in Real GDP.
• D) Real GDP and no change in the price level for levels of Real GDP below Natural Real GDP.
• E) There is not enough information to answer the question.