Use the Following to Answer Questions

question 129

Multiple Choice

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 _____.

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

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Definitions:

Compulsory Retirement

The mandatory retirement of an employee once they reach a certain age, as dictated by company policy or national law.

National Labor Relations Act

A foundational statute in United States labor law that protects the rights of employees to organize and bargain collectively with their employers.

Significant Piece

An important or notable part of something, often referring to a key element that has a major impact or role.

Legislation

Laws or statutes that have been formally enacted by a legislative body to regulate, authorize, prohibit, or provide frameworks for various activities and policies.