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 AD2 to AD1, perhaps because of a large increase in government spending, the price level will _____ and real GDP will _____.
Definitions:
Product Market
The marketplace where final goods or services are offered to consumers, businesses, and the public.
Factor Market
A marketplace for the services of a factor of production (e.g., labor, capital), where firms buy resources they need to produce goods and services.
Circular Flow
An economic model depicting how money moves through an economy between producers and consumers, illustrating the continuous flow of goods and services and financial transactions.
Business
An organization or enterprising entity engaged in commercial, industrial, or professional activities.
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