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question 51

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Use the following to answer questions :
Figure: Classical Versus Keynesian Macroeconomics Use the following to answer questions : Figure: Classical Versus Keynesian Macroeconomics   -(Figure: Classical Versus Keynesian Macroeconomics)  Look at the figure Classical Versus Keynesian Macroeconomics. According to the Keynesian view, if this economy shifts from AD<sub>2</sub> to AD<sub>1</sub>, 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
-(Figure: Classical Versus Keynesian Macroeconomics) Look at the 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 _____.


Definitions:

Springfield, Ohio

A city in the United States known for its historical contributions to industry, education, and the antislavery movement.

Black Section

A designated area or part of an organization, community, or geographical area predominantly inhabited by or reserved for African Americans or people of African descent.

Virgin Islands

A group of islands in the Caribbean, comprising territories of the United States and the United Kingdom.

Denmark

A Nordic country in Northern Europe, known for its high standards of living, comprehensive social security system, and contributions to art, science, and literature.

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