Use the Following to Answer Questions

question 158

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 AD₁ to AD₂,perhaps because of a large decline in investment spending by businesses,the price level will _____ and real GDP will _____.

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

---

Definitions:

Size

in a business or economic context typically relates to the scale or dimensions of a company or market, often measured by metrics such as revenues, employee count, or market share.

Nature

The fundamental qualities or characteristics of something, indicating its intrinsic properties or tendencies.

AASB 108/IAS 8

An international financial reporting standard that focuses on accounting policies, changes in accounting estimates, and errors.

Accounting Policy

Individual tenets, underpinnings, traditions, legislations, and tactics utilized by an establishment in crafting and showcasing its financial accounts.