Use the Following to Answer Questions

question 44

Multiple Choice

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 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

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