6.Suppose a war causes a sudden, large increase in government spending.a) What happens to both prices and GDP in the short-run Classical Model? Do they increase decrease or stay the same? Explain.(b) What happens to both prices and GDP in the short-run Keynesian model? Do they increase decrease or stay the same? Explain.PL AS P2 P1AD2AD1 GDP(Y) Y1PLASP2 P1AD2AD1Y1 Y2 GDP(Y)
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