Use the Following to Answer Questions

question 298

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:

Payroll

The total amount of wages or salaries paid by a business to its employees, as well as the process of calculating and distributing these payments.

Transactional

Pertaining to the conduct of business, especially routine activities involving the transfer or exchange of goods and services.

Talent Management

A strategic approach to attracting, developing, and retaining skilled employees to meet organizational needs.

Johnson and Johnson

A multinational corporation that produces pharmaceuticals, medical devices, and consumer packaged goods.