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Use the following to answer questions:
-(Figure: Classical Versus Keynesian Macroeconomics) Refer to Figure: Classical Versus Keynesian Macroeconomics. According to the Keynesian 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 _____.
Mnemonic Device
A tool that aids in the memorization of information by associating easy-to-remember constructs with complex data.
Systematic
An approach characterized by step-by-step procedures aimed at ensuring thoroughness and accuracy in achieving a specific goal or solving a problem.
Heuristics
Mental shortcuts or rules of thumb that simplify decision making, often used when facing complex problems or incomplete information.
Algorithms
Step-by-step procedures or formulas for solving a problem or completing a task.
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