On the following graph, A.Dj represents the initial aggregate demand curve in a hypothetical economy, and AS represents the initial aggregate supply curve. The economy's full-employment output is $12 trillion. (?) 106 105 104 PRICE LEVEL (CPI AD? Full Employment 10 11 12 13 14 15 16 REAL GDP (Trillions of dollars) The initial short-run equilibrium level of real GDP is |3 trillion, and the initial short-run equilibrium price level is Suppose the government, seeking full employment, borrows money and increases its expenditures by the amount it believes necessary to close the output gap. According to Keynesian economists, which curve in the previous graph will most likely be the new aggregate demand curve? O AD, O AD, O AD, As a result, the equilibrium level of real GDP will be | $ trillion, and the equilibrium price level will be According to Keynesian economists, which of the following is true in this case? O Real GDP does not increase; only the price level increases. O The increase in deficit-financed government spending has no impact on real GDP or the price level. The increase in deficit-financed government spending causes real GDP to increase, but not to full-employment output. The increase in deficit-financed government spending causes real GDP to increase to full-employment output. This is an example of