Use the Following to Answer Questions

question 193

Multiple Choice

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 _____.

• A) rise; fall
• B) rise; not change
• C) not change; rise
• D) fall; fall

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Definitions:

Social Identity

A person's sense of who they are based on their group membership(s).

Categorization

The process of classifying or organizing items into different groups based on shared characteristics or criteria.

Attribution

The process of assigning causes or motives to explain someone's behavior, often relating to how we perceive and judge others.

Social Identity

An individual's sense of self, defined by their group memberships, such as national, cultural, religious, or organizational affiliations.