1) If aggregate demand increases and as a result the price level increases and real national output and employment increases we can assume that:
a) Aggregate demand intersects aggregate supply in the intermediate range of the aggregate supply curve
b) Aggregate demand intersects aggregate supply in the classical range of the aggregate supply curve
c) Aggregate demand intersects aggregate supply in the Keynesian range of the aggregate supply curve
d) Aggregate supply increases to accommodate the change in aggregate demand
2) A decrease in aggregate demand in Keynesian range of aggregate supply will tend to:
a) increase both real national output and the price level
b) decrease both real national output and the price level
c) decrease real national output,but not the price level
d) decrease the price level, but not the real national output